Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209937 
Year of Publication: 
2009
Series/Report no.: 
Working Paper No. 2009/21
Publisher: 
Norges Bank, Oslo
Abstract: 
According to a Keynesian view, short term output fluctuations are normally demand side led. Since prices reflect demand, they should mirror output fluctuations. Thus, prices and output are expected to move in the same direction in the short run. The present paper investigates the historical co-movements of output and prices for a small open raw material based economy, in this case Norway 1830-2006. We find little evidence of a positive relationship. On the contrary, we rather find negative correlations between the two variables, indicating that supply side shocks through the foreign sector were more important for historical business cycles in Norway than assumed hitherto.
Subjects: 
business cycles
output
small open economy
price fluctuations
JEL: 
E31
E32
N10
N13
N14
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-526-7
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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