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High-growth Recoveries, Inventories and the Great Moderation

Maximo Camacho (), Gabriel Perez-Quiros () and Hugo Rodriguez Mendizabal ()
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Gabriel Perez-Quiros: Banco de España

Authors registered in the RePEc Author Service: Gabriel Perez Quiros

No 917, Working Papers from Banco de España, Working Papers Homepage

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 belief, presented informally by different authors, that recession may have now permanent effects, or recession have now an L shape versus old-time recessions that always had a V shape. We also 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 features; Great Moderation; High-growth recovery (search for similar items in EconPapers)
JEL-codes: E32 F02 C22 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2009-08
New Economics Papers: this item is included in nep-bec, nep-fdg and nep-mac
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Related works:
Journal Article: High-growth recoveries, inventories and the Great Moderation (2011) Downloads
Working Paper: High-growth recoveries, inventories and the great moderation (2011) Downloads
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