ARE PRICES COUNTERCYCLICAL - EVIDENCE FROM THE G-7

Authors
CHADHA B PRASAD E
Citation
B. Chadha et E. Prasad, ARE PRICES COUNTERCYCLICAL - EVIDENCE FROM THE G-7, Journal of monetary economics, 34(2), 1994, pp. 239-257
Citations number
27
Categorie Soggetti
Business Finance",Economics
Journal title
Journal of monetary economics → ACNP
ISSN journal
03043932
Volume
34
Issue
2
Year of publication
1994
Pages
239 - 257
Database
ISI
SICI code
0304-3932(1994)34:2<239:APC-EF>2.0.ZU;2-0
Abstract
This paper re-examines the cyclical behavior of prices using postwar q uarterly data for the G-7. We confirm recent evidence that the price l evel is countercyclical. However, we find strong evidence that the inf lation rate is procyclical in our sample. Our results show the importa nce of making a clear distinction between inflation and the cyclical c omponent of the price level when reporting and interpreting stylized f acts regarding business cycles.