IDEAS home Printed from https://ideas.repec.org/a/eko/ekoeko/40_59.html
   My bibliography  Save this article

The Price Structure in the Polish Business Cycle. The Downward Phase

Author

Listed:
  • Andrzej Jędruchniewicz

Abstract

The purpose of this paper is to verify hypothesis derived from the theory of the Austrian School of Economics. It says that in the downward phase of the business cycle, the prices of goods produced in sectors which are remote in relation to consumers fall comparing to the prices of the consumption goods. Conducted research of price variations in the Polish economy provided no grounds for positive, unambiguous verification of this hypothesis. The list of observations confirming the hypothesis involves: (1) a relative decline in investment outlays’ prices comparing to the prices of consumption goods in the downward phase of the cycles in 2000–2002 and 2004–2005, (2) the lowest annual average increases of investment outlays’ prices, (3) the largest decreases in metal prices in all downward stages, (4) dynamic decrease in prices of many raw materials in years 2008–2009. The following variations, however, are contrary to the hypothesis: (1) contrary to the thesis of the Austrians, structure of the dynamics of prices of capital goods, industrial production and consumer goods in the last downward phase, (2) the most dynamic growth in prices of raw materials, (3) the relative increase in prices of machinery and equipment in relation to food prices in the first two downward phases.

Suggested Citation

  • Andrzej Jędruchniewicz, 2015. "The Price Structure in the Polish Business Cycle. The Downward Phase," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 40.
    • Handle: RePEc:eko:ekoeko:40_59
    DOI: 10.17451/eko/40/2015/48
    as

    Download full text from publisher

    File URL: http://ekonomia.wne.uw.edu.pl/ekonomia/getFile/755
    Download Restriction: no
    File URL: https://libkey.io/10.17451/eko/40/2015/48?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frederick C. Mills, 1936. "Prices in Recession and Recovery: A Survey of Recent Changes," NBER Books, National Bureau of Economic Research, Inc, number mill36-1, June.
    2. Arthur F. Burns & Wesley C. Mitchell, 1946. "Measuring Business Cycles," NBER Books, National Bureau of Economic Research, Inc, number burn46-1, June.
    3. Frederick C. Mills, 1936. "Index to "Prices in Recession and Recovery: A Survey of Recent Changes"," NBER Chapters, in: Prices in Recession and Recovery: A Survey of Recent Changes, pages 573-581, National Bureau of Economic Research, Inc.
    4. Francis Bismans & Christelle Mougeot, 2009. "Austrian business cycle theory: Empirical evidence," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 22(3), pages 241-257, September.
    5. William Luther & Mark Cohen, 2014. "An Empirical Analysis of the Austrian Business Cycle Theory," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(2), pages 153-169, June.
    6. Keeler, James P, 2001. "Empirical Evidence on the Austrian Business Cycle Theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 14(4), pages 331-351, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrzej Jędruchniewicz & Dawid Bródka, 2020. "Wahania cen w Polsce w świetle teorii szkoły austriackiej," Bank i Kredyt, Narodowy Bank Polski, vol. 51(6), pages 639-660.
    2. Andrzej Jędruchniewicz, 2012. "Produkcja we wzrostowej fazie cyklu koniunkturalnego w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 73-95.
    3. Alonso-Neira, Miguel A. & Sánchez-Bayón, Antonio & Castro-Oliva, Marcos, 2023. "Teoría austriaca del ciclo económico aplicada al caso español: del inicio del euro a la gran recesión y su recuperación [Austrian economic cycle theory applied to the Spanish case: from the begging," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 35(1), pages 280-310, June.
    4. Nicolás Cachanosky & Alexander W. Salter, 2017. "The view from Vienna: An analysis of the renewed interest in the Mises-Hayek theory of the business cycle," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(2), pages 169-192, June.
    5. Simon Bilo, 2021. "Hayek’s Theory of Business Cycles: A Theory That Will Remain Obscure?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Fall 2021), pages 27-47.
    6. Viviana Alejandra Alfonso & Luis Eduardo Arango Thomas & Fernando Arias & José David Pulido, 2011. "Ciclos de negocios en Colombia: 1980-2010," Borradores de Economia 8328, Banco de la Republica.
    7. Miguel Ángel Alonso-Neira & Antonio Sánchez-Bayón, 2024. "Spanish Boom-bust Cycle Within the Euro Area: Credit Expansion, Malinvestments & Recession (2002-2014)," Politická ekonomie, Prague University of Economics and Business, vol. 2024(4), pages 597-625.
    8. Thierry Aimar & Francis Bismans & Claude Diebolt, 2012. "Economic Cycles: A Synthesis," Working Papers 12-11, Association Française de Cliométrie (AFC).
    9. Thierry Aimar & Francis Bismans & Claude Diebolt, 2010. "Le cycle économique : une synthèse," Revue Française d'Économie, Programme National Persée, vol. 24(4), pages 3-65.
    10. Arturo Hermann, 2018. "The Decline of the 'Original Institutional Economics' in the Post-World War II Period and the Perspectives of Today," Economic Thought, World Economics Association, vol. 7(1), pages 63-86, March.
    11. Martin Komrska, 2015. "Rakouská teorie hospodářského cyklu: VAR analýza pro USA v letech 1978-2013 [The Austrian Business Cycle Theory: VAR Analysis for USA between 1978-2013]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(1), pages 57-73.
    12. William J. Luther & Mark Cohen, 2016. "On the Empirical Relevance of the Mises–Hayek Theory of the Trade Cycle," Advances in Austrian Economics, in: Studies in Austrian Macroeconomics, volume 20, pages 79-103, Emerald Group Publishing Limited.
    13. Walter Labys, 2005. "Commodity Price Fluctuations: A Century of Analysis," Working Papers Working Paper 2005-01, Regional Research Institute, West Virginia University.
    14. William Luther & Mark Cohen, 2014. "An Empirical Analysis of the Austrian Business Cycle Theory," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(2), pages 153-169, June.
    15. Jędruchniewicz Andrzej, 2014. "Money Supply as the Target of the Central Bank," Folia Oeconomica Stetinensia, Sciendo, vol. 14(1), pages 116-136, June.
    16. Andrew Young, 2011. "Illustrating the importance of Austrian business cycle theory: A reply to Murphy, Barnett, and Block; A call for quantitative study," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(1), pages 19-28, March.
    17. Cachanosky, Nicolás & Lewin, Peter, 2016. "An empirical application of the EVA® framework to business cycles," Review of Financial Economics, Elsevier, vol. 30(C), pages 60-67.
    18. Martin Schneider & Martin Spitzer, 2004. "Forecasting Austrian GDP using the generalized dynamic factor model," Working Papers 89, Oesterreichische Nationalbank (Austrian Central Bank).
    19. Valentina Aprigliano & Danilo Liberati, 2021. "Using Credit Variables to Date Business Cycle and to Estimate the Probabilities of Recession in Real Time," Manchester School, University of Manchester, vol. 89(S1), pages 76-96, September.
    20. Drew Creal & Siem Jan Koopman & Eric Zivot, 2008. "The Effect of the Great Moderation on the U.S. Business Cycle in a Time-varying Multivariate Trend-cycle Model," Tinbergen Institute Discussion Papers 08-069/4, Tinbergen Institute.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eko:ekoeko:40_59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.