Investment good prices drive 75% of economic fluctuations, study finds.
Stock market prices go up and down with the economy, while prices for investment goods move in the opposite direction. A study found that most of the ups and downs in the economy are due to changes in how businesses invest in technology. This affects things like jobs and how much businesses produce. The study also showed that when interest rates are high, the economy tends to slow down. This is not just because of changes in how much money is available, but also because of real changes in the economy.