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Durable Goods and the Business Cycle

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Author Info

  • Susan Black

    (Reserve Bank of Australia)

  • Tom Cusbert

    (Reserve Bank of Australia)

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    Abstract

    Spending on durable goods tends to be more cyclical than spending on non-durable goods and services as it can be more readily postponed in times of economic weakness. During the recent global economic slowdown, the decline in durable goods spending was a key transmission mechanism of the uncertainty associated with the global financial crisis to the broader economy, as households and businesses delayed purchases of durable goods.

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    File URL: http://www.rba.gov.au/publications/bulletin/2010/sep/pdf/bu-0910-2.pdf
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    Bibliographic Info

    Article provided by Reserve Bank of Australia in its journal RBA Bulletin.

    Volume (Year): (2010)
    Issue (Month): (September)
    Pages: 11-18

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    Handle: RePEc:rba:rbabul:sep2010-02

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    Related research

    Keywords: Australia; durable goods; machinery & equipment investment; business cycle;

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    1. Fisher, Lance A & Otto, Glenn & Voss, Graham M, 1996. "Australian Business Cycle Facts," Australian Economic Papers, Wiley Blackwell, vol. 35(67), pages 300-320, December.
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