## Are Prices Countercyclical? Evidence From the G-7

_IMF Working Papers, August 1, 1994_

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## Bibliographic details
- Authors: Eswar S Prasad, Bankim Chadha
- Published: August 1, 1994
- Series: IMF Working Papers

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### Main findings
- 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.

### Data and empirical approach
- 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.

### Thematic scope and subjects
- 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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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/are-prices-countercyclical-evidence-from-the-g-7-1256_