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Economic Perspectives, 22, 3rd, No. 3, September 1998
The increasing importance of retailers' inventories
Although inventory.sales (IS) ratios and inventory investment volatility have declined somewhat since the early 1980s, little evidence supports the view that declining IS ratios are associated with declines in inventory investment volatility. In the retail sector, IS ratios have risen and inventory investment volatility has, at best, not increased, pointing to a more significant role in future cyclical fluctuations.


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