{
  "title": "Are Prices Countercyclical? Evidence From the G-7",
  "publication": "IMF Working Papers, August 1, 1994",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/are-prices-countercyclical-evidence-from-the-g-7-1256",
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  "summary": "This paper re-examines the cyclical behavior of prices using postwar quarterly data for the G-7. We confirm recent evidence that the price level is countercyclical. However, we find strong evidence that the inflation rate is procyclical in our sample.",
  "sections": [
    {
      "heading": "Main findings",
      "content": "- The price level is countercyclical in the authors' postwar quarterly sample for the G-7.\n- The inflation rate is procyclical in the same sample.\n- The results emphasize the importance of distinguishing between inflation and the cyclical component of the price level when reporting and interpreting stylized facts about business cycles."
    },
    {
      "heading": "Data and empirical approach",
      "content": "- Study based on postwar quarterly data for the G-7.\n- Keywords indicating methods and variables examined include: HP filter, HP-filtered output, HP-filtered price, inflation rate, inflation-output correlation, price-output correlation, aggregate price level."
    },
    {
      "heading": "Thematic scope and subjects",
      "content": "- Subjects: Business cycles, Cyclical unemployment, Economic growth, Inflation, Labor, Prices, Unemployment, Unemployment rate.\n- Keywords: aggregate price level, Business cycles, correlation, countercyclical price behavior, Cyclical unemployment, HP filter, HP-filtered output, HP-filtered price, Inflation, inflation rate, inflation-output correlation, positive correlation, price, price cyclicality, price level, price-output correlation, Unemployment, Unemployment rate, WP.\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/are-prices-countercyclical-evidence-from-the-g-7-1256"
    }
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    "[Markdown version](/en/publications/wp/issues/2016/12/30/are-prices-countercyclical-evidence-from-the-g-7-1256/index.md)",
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    "Authors: Eswar S Prasad, Bankim Chadha",
    "Published: August 1, 1994",
    "Series: IMF Working Papers",
    "The price level is countercyclical in the authors' postwar quarterly sample for the G-7.",
    "The inflation rate is procyclical in the same sample.",
    "The results emphasize the importance of distinguishing between inflation and the cyclical component of the price level when reporting and interpreting stylized facts about business cycles.",
    "Study based on postwar quarterly data for the G-7.",
    "Keywords indicating methods and variables examined include: HP filter, HP-filtered output, HP-filtered price, inflation rate, inflation-output correlation, price-output correlation, aggregate price level.",
    "Subjects: Business cycles, Cyclical unemployment, Economic growth, Inflation, Labor, Prices, Unemployment, Unemployment rate.",
    "Keywords: aggregate price level, Business cycles, correlation, countercyclical price behavior, Cyclical unemployment, HP filter, HP-filtered output, HP-filtered price, Inflation, inflation rate, inflation-output correlation, positive correlation, price, price cyclicality, price level, price-output correlation, Unemployment, Unemployment rate, WP."
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