This study falls into two parts. Part I contains a theoretical analysis of the relation of inventories and inventory fluctuations to the business cycle. It begins with a brief survey of the treatment of inventories in the literature of business cycles. Then a theoretical model of the economic...

Inventory changes constitute in all countries a small fraction of the Gross National Product but also a major source or an indicator of cyclical fluctuations. In this volume both possible ways of propagation are investigated by examining in the first part what macroeconomists have learned and...