Until the 1980s, short-run economic fluctuations andgrowth were viewed as separate processes. However,recent studies suggest that short-run fluctuationsmight influence the growth. This new view supportsthe existence of a link between volatility and growthof output, which is important for policy makers ashigh economic growth and reducing business cyclevolatility might either be viewed as complementarypolicy goals or as tradeoffs. This book aims to provide a better understanding ofthe link between volatility and growth. The link isexamined using three samples of countries overdifferent time periods. The robustness of the link todifferent choices of time and samples is tested butwe fail to find a robust link. Therefore, analternative method is used that allows volatility andgrowth to vary over time. The estimations with thealternative method give a strong negative linkbetween volatility and growth. This finding isimportant for policy makers, as a policy that reducesbusiness cycle volatility, is also helpful forincreasing long run growth. This book appeals tostudents, professors and researchers who areinterested in economic growth and applied macroeconomics.