Blanchard, OJ and Quah, Danny (1989) The dynamic effects of aggregate demand and supply disturbances. American economic review, 79 (4). pp. 655-673. ISSN 0002-8282
Abstract
We interpret fluctuations in GNP and unemployment as due to two types of disturbances: disturbances that have a permanent effect on output and disturbances that do not. We interpret the first as supply disturbances, the second as demand disturbances. Demand disturbances have a hump-shaped mirror-image effect on output and unemployment. The effect of supply disturbances on output increases steadily over time, peaking after two years and reaching a plateau after five years.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.aeaweb.org/aer/index.php |
| Additional Information: | © 1989 American Economic Association |
| Library of Congress subject classification: | H Social Sciences > HB Economic Theory H Social Sciences > HG Finance |
| Journal of Economic Literature Classification System: | C - Mathematical and Quantitative Methods > C3 - Econometric Methods: Multiple; Simultaneous Equation Models; Multiple Variables; Endogenous Regressors E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles |
| Sets: | Departments > Economics Research centres and groups > LSE IDEAS Collections > Economists Online Research centres and groups > Centre for the Study of Human Rights |
| Rights: | http://www.lse.ac.uk/library/rights/LSERO.htm |
| URL: | http://eprints.lse.ac.uk/1572/ |
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