Download or read book Are Prices Countercyclical? Evidence From the G-7 written by Mr.Bankim Chadha and published by International Monetary Fund. This book was released on 1994-08-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper re-examines the cyclical behavior of prices using postwar quarterly data for the G-7. We confirm recent evidence that the price level is countercyclical. However, we find strong evidence that the inflation rate is procyclical in our sample. Our results show the importance of making a clear distinction between inflation and the cyclical component of the price level when reporting and interpreting stylized facts regarding business cycles.