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.
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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.
|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)|
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