The Ifo Business Climate is one of the best-known German business cycle indicators. Studies on German business cycle indicators have ranked the Ifo Business Climate and its components in the top group of the indicators, together with incoming orders, money supply and interest rates. There is...

Inventory fluctuations play an important role in the formation of business cycles. In Germany, little research has been dedicated to this topic recently. In this study, a structural times series model in the tradition of Harvey (1989) is employed to decompose German inventory investment into...

The purpose of this paper is to examine with econometric methods the impact of foreign trade on the German business cycle. The outcome is that the fluctuations of German GDP can be explained to a considerable amount by the fluctuations of world demand and changes in the terms of trade.