01732cas a2200265 a 4500 AALejournalIMF017282 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475560329 1018-5941 BD-DhAAL BD-DhAAL Andrle, Michal. Output and Inflation Co-movement : An Update on Business-Cycle Stylized Facts / Michal Andrle, Jan Bruha, Serhat Solmaz. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students What are the drivers of business cycle fluctuations? And how many are there? By documenting strong and predictable co-movement of real variables during the business cycle in a sample of advanced economies, we argue that most business cycle fluctuations are driven by one major factor. The positive co-movement of real output and inflation convincingly argues for a demand story. We propose a simple statistic that can compare data and models. Based on this statistic, we show that the recent vintage of structural economic models has difficulties replicating the stylized facts we document. Mode of access: Internet Bruha, Jan. Solmaz, Serhat. IMF Working Papers; Working Paper ; No. 2016/241 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/241/001.2016.issue-241-en.xml IMF e-Library