Chadha, J.S. and Nolan, Charles (2002) A Long View of the UK Business Cycle. National Institute Economic Review, 182 (1). pp. 72-89. ISSN 0027-9501.
| The full text of this publication is not available from this repository. (Contact us about this Publication) |
Abstract
We outline a number of 'stylised' facts on the UK business cycle obtained from analysis of the long-run UK annual dataset. The findings are to some extent standard. Consumption and investment are pro-cyclical, with productivity playing a dominant role in explaining business cycle fluctuations at all horizons. Money neutrality obtains over the long run but there is clear evidence of non-neutrality over the short run, particularly at the business cycle frequencies. Business cycle rela-tionships with the external sector via the real exchange rate and current account are notable. Postwar, the price level is counter-cyclical and real wages are pro-cyclical, as are nominal interest rates. Modern general equilibrium macroeconomic models capture many of these patterns.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HB Economic Theory |
| Divisions: | Faculties > Social Sciences > School of Economics |
| Depositing User: | Jagjit Chadha |
| Date Deposited: | 02 Oct 2008 21:51 |
| Last Modified: | 14 Jan 2010 14:42 |
| Resource URI: | http://kar.kent.ac.uk/id/eprint/10993 (The current URI for this page, for reference purposes) |
- Depositors only (login required):
