We identify an inflationary technology news shock as the leading source of business cycle variations for the postwar U ….S. economy. This shock acts like a demand shock: it induces strong positive comovement in real quantities - GDP, consumption … technological innovations reduce inflation. The technology news shock became the predominant source of the business cycle from the …

preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in …

preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in …