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Spontaneous shifts in output originating within the business sector are an important factor in aggregate fluctuations. This paper develops a simple two-component decomposition of the movement of real GNP. One component is the path that GNP would have followed in order to deliver the volume of...
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negative impact on private investment in SSAC as GDP volatility gives a negative signal to private investors. The study also … suggests that GDP volatility may be harmful for private investment in developing countries and negative effect on private … countries should equally focus on managing the volatility of GDP to increase private investment along with other measures for …
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This paper shows how US monetary policy contributed to the drop in the volatility of US output fluctuations and to the … decoupling of household investment from the business cycle. I estimate a model of household investment, an aggregate of non … durable consumption and corporate sector investment, inflation and a short-term interest rate. Subsets of the models …
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