12 Facts About Economic cycle

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

Since surprising news in the economy, which has a random aspect, impact the state of the business Economic cycle, any corresponding descriptions must have a random part at its root that motivates the use of statistical frameworks in this area.

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

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

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

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The political business Economic 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".

In recent years, proponents of the "electoral business Economic cycle" theory have argued that incumbent politicians encourage prosperity before elections in order to ensure re-election – and make the citizens pay for it with recessions afterwards.

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.

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 Economic cycle is caused by government intervention into the economy, and that the Economic cycle would be comparatively rare and mild without central government interference.

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

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