Inventory Mistakes and the Great Moderation


Why did the volatility of U.S. real GDP decline by more than the volatility of final sales with the Great Moderation in the mid-1980s? One possible explanation is that firms shifted their inventory behaviour towards a greater emphasis on production smoothing. In this paper, we investigate the role of inventories in the Great Moderation by estimating an… (More)


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@inproceedings{Morley2009InventoryMA, title={Inventory Mistakes and the Great Moderation}, author={James F. Morley and Aarti Singh}, year={2009} }