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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 ...
Debt deflation is a theory of economic cycles which holds that recessions and depressions are due to the overall level of debt shrinking (deflating). Hence, the credit cycle is the cause of the economic cycle. The theory was developed by Irving Fisher following the Wall Street Crash of 1929 and the ensuing Great Depression.
[4] [5] Whereas a recession is defined as two consecutive quarters of decline in GDP, [6] economic recovery and prosperity are two successive phases of expansion. Economic expansion can be affected by external factors such as technological changes or weather conditions, [7] or by internal factors such as a country's fiscal policy, [8] monetary ...
The long cycle, according to Dr. Dan Cox, is a period of time lasting approximately 70 to 100 years. At the end of that period, "the title of most powerful nation in the world switches hands." [15] Modelski divides the long cycle into four phases. When periods of global war, which could last as much as one-fourth of the total long cycle, are ...
Rostow's model is descendent from the liberal school of economics, emphasizing the efficacy of modern concepts of free trade and the ideas of Adam Smith.It also denies Friedrich List’s argument that countries reliant on exporting raw materials may get “locked in”, and be unable to diversify, in that Rostow's model states that countries may need to depend on a few raw material exports to ...
The Soviet economist Nikolai Kondratiev was the first to observe technology life cycle in his book The Major Economic Cycles (1925). [2] [3] [4] Today, these cycles are called Kondratiev wave, the predecessor of TLC. TLC is composed of four phases:
One of the clearest signs that a new economic supercycle has arrived is when the financial rules go topsy-turvy. The previous supercycle was ushered in when the Federal Reserve, in response to the ...
Carlota Perez has found that these cycles of technological revolutions are coupled with financial cycles. Each cycle, which may take 50 – 60 years, consists of the following four phases: [2] [3] Irruption phase: There is an intense funding of innovation in new technologies. Clusters of new revolutionary inventions appear.