Essay On Business Cycles and Recessions
Dissertation : Essay On Business Cycles and Recessions. Recherche parmi 298 000+ dissertationsPar Habib Bardi • 25 Novembre 2017 • Dissertation • 308 Mots (2 Pages) • 785 Vues
Essay on Business Cycles and Recessions
Business cycles consist in fluctuations found in the aggregate economic activity of nations. They are represented by movements of gross domestic product around its long-term growth trend. Downward fluctuations of GDP are called recessions and are known to raise many theories, also leading to the implementation of various policies to counter their progression.
We may therefore wonder how recessions, and, more broadly, business cycles are regulated.
In order to address this problem and have a better understanding of these phenomena, we will firstly characterize business cycles than make an in-depth analysis of recessions.
I/ Business cycles characterization
- Typology, definitions
- Business cycles, depression, recession, expansion: definitions
- Different policies in use in order to regulate business cycles
- Stabilization policies
- Monetary policies
- Fiscal policies (tax cuts, government spending)
II/ In depth analysis of recessions
- Various causes and different types of recessions
- Difference between real shocks and financial shocks (monetary factors)
- Balance-sheet recessions, depressions
- Theories and predictability in real-life cases
- Efficient-market theory and Minsky’s theory: Economic stability necessarily precedes economic instability as illustrated by table 1
- The next American recession is unpredictable, but it will likely take place in 2017 or 2018, and the policies that will be implemented will depend on who is elected for presidency.
In conclusion, we may affirm that the fluctuations in economic activity that an economy experiences can adopt various forms and are studied and regulated through diverse, contrasted theories and policies. The world’s economies have known many recessions with a wide range of causes and consequences, which may lead to think they are unpredictable. What we know is that there are multiple ways to fight them and the first concern is to know which one to choose.
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