The dynamic effects of aggregate demand and supply disturbances
Blanchard, O. & Quah, D.
(1989).
The dynamic effects of aggregate demand and supply disturbances.
American Economic Review,
79(4), 655-673.
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 |
|---|---|
| Copyright holders | © 1989 American Economic Association |
| Departments |
LSE > Academic Departments > Economics LSE > Research Centres > LSE IDEAS LSE > Academic Departments > Sociology > LSE Human Rights |
| Date Deposited | 27 Apr 2007 |
| URI | https://researchonline.lse.ac.uk/id/eprint/1572 |
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- https://www.scopus.com/pages/publications/85016078433 (Scopus publication)
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