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Economic Commentary

The Business Cycle, Investment, and a Wayward M2: A Midyear Review

Following a string of small advances that began early last year, the pace of economic expansion, as measured by gross domestic product (GDP), picked up in the first quarter. Led by a huge $43.1 billion increase in consumer spending, the annualized 2.4 percent GDP growth in 1992:IQ was the strongest rise in overall economic activity in three years and came despite another large liquidation of business inventories (down $17.6 billion).

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Bryan, Michael F., and John Erceg. 1992. “The Business Cycle, Investment, and a Wayward M2: A Midyear Review.” Federal Reserve Bank of Cleveland, Economic Commentary 7/15/1992.