Author: Mr.Jens R. Clausen
Publisher: International Monetary Fund
ISBN: 1455205435
Category : Business & Economics
Languages : en
Pages : 40
Book Description
In the United States and a few European countries, inventory behavior is mainly the outcome of demand shocks: a standard buffer-stock model best characterizes these economies. But most European countries are described by a modified buffer-stock model where supply shocks dominate. In contrast to the United States, inventories boost growth with a one-year lag in Europe. Moreover, inventories provide limited information to improve growth forecasts particularly when a modified buffer-stock model characterizes inventory behavior.