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Business cycles are a type of fluctuation found in the aggregate economic activity of nations that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions, contractions, and revivals which merge into the expansion ...
According to the four stages of a business cycle (expansion, peak, contraction, trough), an expansion is an upward trend when a country's economy experiences relatively rapid growth as measured by a rise in industrial production, employment, consumer spending, and utilization of resources.
In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. [ 1 ] [ 2 ] Recessions generally occur when there is a widespread drop in spending (an adverse demand shock ).
The American Business Cycle: Continuity and Change. UMI. ISBN 978-0-226-30452-6. Knoop, Todd A. (2004). Recessions and Depressions: Understanding Business Cycles. Praeger Publishers. ISBN 978-0-275-98162-4. US Business Cycle Expansions and Contractions, National Bureau of Economic Research. Retrieved on September 19, 2009. Zarnowitz, Victor (1996).
The credit cycle is the expansion and contraction of access to credit over time. [1] Some economists, including Barry Eichengreen, Hyman Minsky, and other Post-Keynesian economists, and members of the Austrian school, regard credit cycles as the fundamental process driving the business cycle.
This hurt business for companies based in Europe, as the profits made abroad (especially in the Americas) had an unfavorable exchange rate. France and Germany both entered recession towards the end of 2001, but in May 2002 both countries declared that their recessions had ended after a mere six months each.
Kondratiev supposed that in 1896 a new cycle had started. The long cycle supposedly affects all sectors of an economy. Kondratiev focused on prices and interest rates, seeing the ascendant phase as characterized by an increase in prices and low interest rates while the other phase consists of a decrease in prices and high interest rates ...
The Austrian business cycle theory (ABCT) is an economic theory developed by the Austrian School of economics seeking to explain how business cycles occur. The theory views business cycles as the consequence of excessive growth in bank credit due to artificially low interest rates set by a central bank or fractional reserve banks. [1]