Inventories are one driver of the business cycle. A common argument is that the movement towards just-in-time inventories has reduced the inventory cycle, and hence reduced the amplitude of the business cycle. Although plausible, it is very difficult to distinguish this from a lessened amplitude of the business cycle causing less swings in inventories. Since inventory growth is part of investment, one could view it as a subset of the argument that investment trends drive the business cycle (in most cases; sufficiently stupid policy can always cause a recession).
(Note: this article is based on some charts and thinking on inventories that is a section in my manuscript on recessions. I am not posting the full text, as I think it has too much background information, and probably needs some serious editing.)Bond Economics
Comments On The Inventory Cycle
Brian Romanchuk
Sometime it becomes very hard to find a well written and well established bog which give you correct and useful information. However, I found this blog and got some relevant information which are really helpful for me.vve beheer amsterdam
ReplyDeleteSurprising background experienced in everything sentence of this article. I made a decent attempt to get hint about how I could demonstrate substance of this blog. I must say, not much powerful but rather I surrendered every one of my weapons soon after understanding it.kooklessen amsterdam
ReplyDelete