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Book Cover
E-book
Author Prasad, Eswar

Title Are Prices Countercyclical? / Eswar Prasad
Published Washington, D.C. : International Monetary Fund, 1992

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Description 1 online resource (37 pages)
Series IMF Working Papers; Working Paper, 1018-5941 ; No. 92/88
IMF Working Papers; Working Paper ; no. 92/88
Summary This paper examines the comovement of prices with the cyclical component of output. It argues that determining the cyclical behavior of prices by applying the same stationarity-inducing transformation to the levels of both output and prices, and examining the correlations of the resulting series, can be misleading. A more appropriate procedure is to examine the correlations between the rate of inflation and the level of the cyclical component of output. In post-war U.S. data the correlations between similarly transformed price and output data are consistently and often strongly negative, as reported recently by a number of authors as evidence of countercyclical price behavior. The rate of inflation, however, is consistently and usually strongly positively correlated with various measures of the cyclical component of output
Notes Print version record
Subject Correlation.
Correlations.
Price Level.
Rate of Inflation.
United States.
Form Electronic book
Author Chadha, Bankim
Prasad, Eswar
ISBN 1451851073
9781451851076