Inventories and the Business Cycle

Darren Flood and Philip Lowe

The Economic Record, 1995, vol. 71, issue 1, 27-39

Abstract: This paper examines the relationship between the inventory cy and the business cycle using both macroeconomic and survey da It is argued that over the past decade and a half, the changes inventory management have reduced the amplitude of the inventc cycle. The paper also argues that the behaviour of inventories consistent with demand shocks being an important source of business cycle fluctuations.

Date: 1995
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