Output and Inflation Co-movement An Update on Business-Cycle Stylized Facts

What are the drivers of business cycle fluctuations? And how many are there? By documenting strong and predictable co-movement of real variables during the business cycle in a sample of advanced economies, we argue that most business cycle fluctuations are driven by one major factor. The positive co...

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Bibliographic Details
Main Author: Andrle, Michal
Other Authors: Bruha, Jan, Solmaz, Serhat
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2016
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Output and Inflation Co-movement  |b An Update on Business-Cycle Stylized Facts  |c Michal Andrle, Jan Bruha, Serhat Solmaz 
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300 |a 37 pages 
651 4 |a United States 
653 |a Business cycles 
653 |a Interest rates 
653 |a Econometric Modeling: General 
653 |a Inflation 
653 |a Finance 
653 |a Econometric analysis 
653 |a Monetary economics 
653 |a Financial services 
653 |a Inflation targeting 
653 |a Deflation 
653 |a Short term interest rates 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Price Level 
653 |a Cycles 
653 |a Econometric models 
653 |a Banks and Banking 
653 |a Economic growth 
653 |a Econometric and Statistical Methods: General 
653 |a Prices 
653 |a Macroeconomics 
653 |a Monetary policy 
653 |a Business Fluctuations 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) 
653 |a Econometrics 
653 |a Econometrics & economic statistics 
653 |a Monetary Policy 
653 |a Money and Monetary Policy 
700 1 |a Bruha, Jan 
700 1 |a Solmaz, Serhat 
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520 |a What are the drivers of business cycle fluctuations? And how many are there? By documenting strong and predictable co-movement of real variables during the business cycle in a sample of advanced economies, we argue that most business cycle fluctuations are driven by one major factor. The positive co-movement of real output and inflation convincingly argues for a demand story. We propose a simple statistic that can compare data and models. Based on this statistic, we show that the recent vintage of structural economic models has difficulties replicating the stylized facts we document