Second, NBER dating methods have not remained consistent. This contributes to the impression that prewar recessions were longer and expansions shorter. Third, the economy is increasingly becoming a producer of services, and productivity in the service sector is often difficult to measure. In general, the tremendous changes experienced in recent years associated with the information revolution are likely to affect the cyclical behavior of the economy in ways not yet fully understood. Implications for macroeconomic policy Understanding changes in the nature of the business cycle is important for policymakers.
Most central banks view contributing to a stable economy as one of their responsibilities.
Promoting stable growth has important benefits, and reducing the frequency or severity of recessions is desirable as part of a policy to ensure employment opportunities for all workers. Preventing expansions from generating inflation is also important since once inflation gets started, high unemployment is usually necessary to bring it back down. One might think, then, that policy designed to stabilize the economy should attempt to eliminate fluctuations entirely. This is not the case, for a very important reason. It grows over time due to population growth, growth in the economy's capital stock, and technological change.