High-growth recoveries, inventories and the Great Moderation

18 páginas, 15 figuras, 3 tablas.-- El pdf del artículo es el documento de trabajo.We present evidence about the disappearance of the high-growth recoveries from recessions with intense job creation typically observed until the eighties. This result matches the belief that recessions now have an L-shape as opposed to the old-time recessions that always had a V-shape. We also show how this change in business cycle dynamics can explain part of the Great Moderation. We postulate that these two phenomena may be due to changes in inventory management brought about by improvements in information and communications technologies.Camacho acknowledges financial support from MICINN(ECO2010-19830).Rodríguez Mendizábal thanks thesupport of the Barcelona GSE research network and of the Generalitat de Catalunya,as well as the financial support of the MICINN (ECO2009-07958).Peer reviewe