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Article: 'Tis the season. (seasonal fluctuations)(Economics Focus)
- Article from:
- The Economist (US)
- Article date:
- December 14, 1996
CopyrightCOPYRIGHT 1996 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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TO EVERYTHING there is a season, and economic activity is no exception. Driven by holidays, weather and the scholastic calendar, different sectors of the economy experience miniature booms and recessions every year. Most economists-especially those who track the economy for a living-are intimately familiar with these seasonal fluctuations. Yet economists who study these patterns tend to view them as distractions, something to be purged from the data to gain a clearer view of long-term trends. This makes sense in most cases. But ignoring seasonal patterns can sometimes lead one to overlook valuable information.
Over the course of a year, economic activity is extremely ...