Inventory Mistakes and the Great Moderation

Abstract

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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Cite this paper

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