Download or read book Cyclical Behavior of Inventories and Growth Projections Recent Evidence From Europe and the United States written by Mr.Jens R. Clausen and published by International Monetary Fund. This book was released on 2010-09-01 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the United States and a few European countries, inventory behavior is mainly the outcome of demand shocks: a standard buffer-stock model best characterizes these economies. But most European countries are described by a modified buffer-stock model where supply shocks dominate. In contrast to the United States, inventories boost growth with a one-year lag in Europe. Moreover, inventories provide limited information to improve growth forecasts particularly when a modified buffer-stock model characterizes inventory behavior.