This paper shows that negative comovements between major macroeconomic variables at business-cycle frequencies are commonly observed, but that standard Real Business Cycle (RBC) theory fails to predict this feature of the data. We show that allowing for ``anticipation effects'' in response to...

This paper points out that negative comovements between macroeconomic aggregates are commonly observed in US data and that this is not explained by conventional business cycle models which emphasize positive comovements only. We discuss how these facts can be readily explained in simple...