11 Facts About Business cycle

Business cycle fluctuations are usually characterized by general upswings and downturns in a span of macroeconomic variables.

Series used to infer the underlying business cycle fall into three categories: lagging, coincident, and leading.

For example, Milton Friedman said that calling the business cycle a "cycle" is a misnomer, because of its non-cyclical nature.

View of the economic Business cycle as caused exogenously dates to Say's law, and much debate on endogeneity or exogeneity of causes of the economic Business cycle is framed in terms of refuting or supporting Say's law; this is referred to as the "general glut" debate.

The political business cycle theory is strongly linked to the name of Michal Kalecki who discussed "the reluctance of the 'captains of industry' to accept government intervention in the matter of employment".

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The political business cycle is an alternative theory stating that when an administration of any hue is elected, it initially adopts a contractionary policy to reduce inflation and gain a reputation for economic competence.

Partisan business cycle suggests that cycles result from the successive elections of administrations with different policy regimes.

One of the criticisms of the Austrian business cycle theory is based on the observation that the United States suffered recurrent economic crises in the 19th century, notably the Panic of 1873, which occurred prior to the establishment of a U S central bank in 1913.

Austrians claim that the boom-and-bust business cycle is caused by government intervention into the economy, and that the cycle would be comparatively rare and mild without central government interference.

However, even according to Keynesian theory, managing economic policy to smooth out the Business cycle is a difficult task in a society with a complex economy.

Karl Marx claimed that recurrent business cycle crises were an inevitable result of the operations of the capitalistic system.