The Dynamic Effects of Aggregate Demand and Supply Disturbances

descriptionPublicationkeyboard_double_arrow_right Report , Other literature type , Article , Preprint , Research 01 Oct 1988 United States Publisher:National Bureau of Economic Research

Authors: Blanchard, Olivier; Quah, Danny;

doi: 10.3386/w2737

handle: 1721.1/63437

The Dynamic Effects of Aggregate Demand and Supply Disturbances

- Summary
- Metrics

Abstract

We interpret fluctuations in GNP and unemployment as due to two types of disturbances: disturbances that have a permanent effect on output and disturbances that do not. We interpret the first as supply disturbances, the second as demand disturbances. Demand disturbances have a hump-shaped mirror-image effect on output and unemployment. The effect of supply disturbances on output increases steadily over time, peaking after two years and reaching a plateau after five years.

Country

United States

Related Organizations

Massachusetts Institute of Technology
United States
National Bureau of Economic Research
United States
National University of Singapore
Singapore
Peterson Institute for International Economics
United States

Impact byBIP!

	selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	579
	popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.	Top 1%
	influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).	Top 0.1%
	impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.	Average