Wang, Pengfei; Wen, Yi - Federal Reserve Bank of St. Louis - 2009
also propagate the business cycle. That is, the incentive to accumulate inventories under the cost-smoothing motive can … greatly amplify but
also propagate the business cycle. That is, the incentive to accumulate inventories under the
cost … the (S,s) rule) does not increase the variance of aggregate output.
Keywords: Inventories, Accelerator, Business Cycle …