Changes in the stock of firms' inventories are an important component of the business cycle. In fact, discussion about … the timing of a recovery following a recession often focuses on inventories. In "The Role of Inventories in the Business …

This Economics Research Note examines inventories in the business cycle for Australia covering the period since the mid … 1980s. The Australian Bureau of Statistics (ABS) defines inventories as all materials etc., work in progress and finished …

, output, and inventories. Unlike the widely documented change in absolute volatility over that period, known as the Great … "investment wedge" estimated with inventories, unlike previous measures, correlates well with established independent measures of …

We argue that the behavior of manufacturing inventories provides evidence against models of business cycle fluctuations … with short-run diminishing returns. Finished goods inventories move proportionally much less than sales or production over …