American Economic Review Vol. 79 No. 5 1989
A Traditional Interpretation of Macroeconomic Fluctuations
Abstract
Under the traditional interpretation of macroeconomic fluctuations, aggregate demand shocks move output and prices in the same direction, while aggregate supply shocks move output and prices in opposite directions. This paper examines the joint behavior of U.S. output, unemployment, prices, wages, and nominal money and asks whether it is consistent with this interpretation. The answer is a qualified yes.
- Volume
- 79
- Issue
- 5
- Pages
- 1146-1164
- Sources
- bibtex:phds-export.bib