Whether prices are pro- or counter-cyclical represents a major difference in the predictions of models that focus on … supply. Earlier studies have interpreted their finding of generally negative cross-correlations between output and prices in … generated them, or whether prices are best characterized as pro- or counter-cyclical. In fact, negative price output …

. The variance of agent valuations determines how quickly prices adjust following a shock to fundamentals. We examine the …

findings of excess sensitivity of consumption and asset prices to new information. …

Data on international relative prices from industrialized countries show large and systematic deviations from relative … international relative prices. We find that when our model is parameterized to match salient features of the data on international …

productivity" channel. The relative price channel results from changes in the relative prices of aggregates, such as investment vis …