2. Stylized facts of business cycles

Notebook here (keep all the files in the same folder)

Exercise 1. Using the same database used in the notebook above, try to confirm whether the major criticism directed towards the HP filter (in slide 27) makes sense or not.

Exercise 2. Using data up to December 2012 in the same database of the notebook above, see whether the point raised by James Bullard (slide 29) makes sense.

Readings: see information in slides' last section. The lecture notes by Dirk Krueger can be found here.