Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-78c5997874-lj6df Total loading time: 0 Render date: 2024-11-14T01:35:04.291Z Has data issue: false hasContentIssue false

2 - Trends and Cycles, Shocks and Stability

Published online by Cambridge University Press:  28 March 2024

Jeremy B. Rudd
Get access

Summary

The chapter examines how to decompose macroeconomic data into trend and cyclical components, and whether doing so is innocuous. The nature of business cycles is examined; specifically, whether a shock-propagation or regime-switching framework is more useful for understanding economic fluctuations. The chapter also discusses whether the economy has self-correcting tendencies that cause it to return to full employment following a recession.

Keywords

business cyclesseasonal cycleseconomic fluctuationsstatistical filters
Type
Chapter
Information
A Practical Guide to Macroeconomics , pp. 18 - 45
Publisher: Cambridge University Press
Print publication year: 2024

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×