Are the High-growth Recovery Periods Over?

Hugo Rodriguez Mendizabal, Maximo Camacho and Gabriel Perez Quiros

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: We present evidence about the loss of the so-called ?plucking effect?, that is, a high-growth phase of the cycle typically observed at the end of recessions. This result matches the popular belief, presented informally by different authors, that the current recession will have permanent effects, or that the current recession will have an L shape versus the old-time recessions that have always had a V shape. Furthermore, we show that the loss of the ?plucking effect? can explain part of the Great Moderation. We postulate that these two phenomena may be due to changes in inventory management brought about by improvements in information and communications technologies.

Keywords: Business cycle characteristics; Great Moderation; High-growth recovery (search for similar items in EconPapers)
JEL-codes: C22 E32 F02 (search for similar items in EconPapers)
Pages: 37
Date: 2009-04-20
New Economics Papers: this item is included in nep-bec, nep-fdg and nep-mac
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Are the high-growth recovery periods over? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:772.09

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