: in response to news about future increases in TFP, inventories rise and comove positively with other major macroeconomic … when extended to include inventories. To explain the empirical inventory behavior, we therefore develop a framework that …

cost of holding inventories. Both channels have equilibrium effects that are amplified and propagated over time through … inventories, which serve as a way to both smooth production and facilitate greater sales at a given price. Through the estimation … played by inventories. A temporary 100 basis point increase in both interest rates causes vehicle production to fall 12 …