Sample Essay

In conclusion, ranges of evidence have been presented about the association between volatility and economic growth. In general, there might be positive, negative or no association between growth and business fluctuations. All are very convincing. Therefore, some researchers examine the cases for more than one relationship to hold.

At 2003 Blackburn and Pelloni issued article based on the study which reveals results that have not been established before. They state that relationship between output growth and volatility depends on the impulse source of fluctuation. Positive or negative relationship might be caused by nominal or real shocks (technology, preference and monetary). Blackburn’s and Pelloni’s study is important because it generates new view of correlation between variance and mean and these results might be one step forward in explaining so far conflicting empirical evidence.

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