Howwell does the stock market anticipate the behavior of the economy? Plot since 1950 the percentage change

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Howwell does the stock market anticipate the behavior of the economy? Plot since 1950 the percentage change from a year ago of the Dow Jones Industrial Average. Is the index a reliable predictor of business cycle downward turns (depicted by the graph by vertical, shaded bars)?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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