excess inventories, firms disinvest more in recessions than they do in expansions. The inventory adjustment process has …

inventories: materials (input) inventories facilitate the production of finished goods, while finished goods (output) inventories … cyclicality of inventory investment and inventory-to-target ratios. Although inventories are an important element of the model … parameters associated with inventories, such as the input inventory to output ratio, play a small role in reducing the volatility …

quicker response of inventories to monetary policy and commodity price shocks buffers production from fluctuations in sales to …