Greg Mankiw's Blog: Investment: Then and Now
This graph show residential investment (in red) and nonresidential investment (in blue). Notice how strikingly different the two recessions are. The last recession shows up strongly in nonresidential investment, while residential investment hardly notices the downturn. This time, residential investment takes a big plunge, while nonresidential investment has not been much affected (yet).
More evidence that business cycles are not all alike.
What is this mean? Still economy is ok, still room to maneuver?.. What it mean business cycles are not all like?.. how many cycles are there for business? How many difference ways to measure cycles? Some sectors are wretched yet other sectors are may ok . That is what he is saying? hoope always nice bit of hope…
