Analyzing the Lebanese Business Cycle and the Monetary Policy
The aim of this research is to analyze How aggregate activity in Lebanon fluctuates with regards to Recurrent
shocks. The Research starts By identifying the Lebanese economic Business Cycle From the first quarter of 1998 to the Fourth
Quarter of 2015 Using Hodrick Prescott Filter. Furthermore, this research studies the relationship between The Capacity
utilization rate and the inflation Rate and study theoretically and empirically How Monetary and Real Shocks account for The
Disturbances that affect the economic activity. Findings prove that, Over the studied period, the Lebanese economy perform
largely under its full capacity and that the Capacity utilization Rate is related to inflation in the short run but not in the long
Index Terms - Capacity utilization rate, Inflation, Monetary disturbances, Potential Output.