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The new view of growth and business cycles.

From: Economic Perspectives  |  Date: 3/22/1999  |  Author: Fisher, Jonas D.M.

Trends and business cycle variation in investment good prices related to nondurables and services consumption tend to contradict traditional views of both business cycles and growth. Contradiction of traditional views was observed after evidence failed to exhibit strong empirical support of the increasing returns view. Some of the evidence observed include the occurrence of a downward trend on investment good prices in terms of consumption goods.

Introduction and summary

Two central ...

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