US business cycles appear to be less disruptive (shorter contractions, longer expansions) than they were prior...

 

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US business cycles appear to be less disruptive (shorter contractions, longer expansions) than they were prior to World War II. Prof. Christina Romer has shown that this appearance O may partly be due to the fact that pre-1930 GDP estimates were extrapolated from volatile Manufacturing-sector data. O perfectly reflects the change in the nature of business cycles, in the post-Will era. O is accurate for expansions but not for contractions. O is the result of measurement errors in US national accounts, after World War II. US business cycles appear to be less disruptive (shorter contractions, longer expansions) than they were prior to World War II. Prof. Christina Romer has shown that this appearance O may partly be due to the fact that pre-1930 GDP estimates were extrapolated from volatile Manufacturing-sector data. O perfectly reflects the change in the nature of business cycles, in the post-Will era. O is accurate for expansions but not for contractions. O is the result of measurement errors in US national accounts, after World War II.

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