The Dynamic Effects of Aggregate Demand and Supply Disturbances.
The authors interpret fluctuations in GNP and unemployment as due to two types of disturbances: disturbances that have a permanent effect on output and disturbances that do not. They interpret the first as supply disturbances, the second as demand disturbances. Demand disturbances have a hump-shaped, mirror-image effect on output and unemployment. The effect of supply disturbances on output increases steadily over time, peaking after two years and reaching a plateau after five years. Copyright 1989 by American Economic Association.
Year of publication: |
1989
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Authors: | Blanchard, Olivier Jean ; Quah, Danny |
Published in: |
American Economic Review. - American Economic Association - AEA. - Vol. 79.1989, 4, p. 655-73
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Publisher: |
American Economic Association - AEA |
Saved in:
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