Banco Central de Chile Documentos de Trabajo Central Bank of Chile Working Papers N° 156 Mayo 2002 THE EFFECTS OF BUSINESS CYCLES ON GROWTH Antonio Fatás La serie de Documentos de Trabajo en versión PDF puede obtenerse gratis en la dirección electrónica: http://www.bcentral.cl/Estudios/DTBC/doctrab.htm. Existe la posibilidad de solicitar una copia impresa con un costo de $500 si es dentro de Chile y US$12 si es para fuera de Chile. Las solicitudes se pueden hacer por fax: (56-2)
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STAGES OF A BUSINESS CYCLE RECESSION A recession—also sometimes referred to as a trough—is a period of reduced economic activity in which levels of buying‚ selling‚ production‚ and employment typically diminish. This is the most unwelcome stage of the business cycle for business owners and consumers alike. A particularly severe recession is known as a depression. RECOVERY Also known as an upturn‚ the recovery stage of the business cycle is the point at which the economy "troughs" out and starts
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Business Cycle Defined The term business cycle refers to the rise and fall in economic activity over what can be several months or even years. These patterns of contraction and expansion occur around a long term growth trend of increased real gross domestic product. It was after World War II that the modern theory of business cycles came to its current evolution. (Sachese‚ Small & Small‚ 2009) Economists Arthur F. Burns and Wesley C. Mitchell have characterized business cycles in what many economists
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interprets the statistical characteristics of the Polish business cycle. It also identifies leading and lagging variables and shows that the economic fluctuations in Poland differ to some extent from those in other emerging and mature economies‚ with Polish growth notably more volatile and government expenditure highly erratic. The available data on GDP growth suggest that the Polish economy is approaching the peak of the second business cycle since the start of economic transformation from a centrally
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the business cycle. What stage is the US currently in? How do you know? What tools can the federal government use to turn the economy around? A business cycle is identified as a sequence of four phases: * Contraction (A slowdown in the pace of economic activity) * Trough (The lower turning point of a business cycle‚ where a contraction turns into an expansion) * Expansion (A speedup in the pace of economic activity) * Peak (The upper turning of a business cycle) A
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The Business Cycle is “the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time.” (Market Economy) These fluctuations are due to supply and demand‚ availability of capital‚ consumer confidence‚ and other factors. Within the Business Cycle are four stages that describe the cycle. The four stages are expansion‚ peak‚ recession and trough. The expansion stage is the phase a business initially enters when coming into the market. This stage demand
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Real Business Cycle Models: Past‚ Present‚ and Future∗ Sergio Rebelo† March 2005 Abstract In this paper I review the contribution of real business cycles models to our understanding of economic fluctuations‚ and discuss open issues in business cycle research. I thank Martin Eichenbaum‚ Nir Jaimovich‚ Bob King‚ and Per Krusell for their comments‚ Lyndon Moore and Yuliya Meshcheryakova for research assistance‚ and the National Science Foundation for financial support. † Northwestern University
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Journal of International Economics 56 (2002) 299–327 www.elsevier.com / locate / econbase Explaining business cycles in small open economies ‘How much do world prices matter?’ M. Ayhan Kose* Graduate School of International Economics and Finance‚ MS-021‚ Brandeis University‚ Waltham‚ MA 02454‚ USA Received 27 May 1998; received in revised form 20 October 2000; accepted 7 April 2001 Abstract This paper analyzes the role of world price shocks – fluctuations in the prices of capital‚ intermediate
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Business Cycles Business Cycles ► The value of real GDP over time shows periodic fluctuations in its movement ► The business cycle refers to the periodic fluctuations of economic activity about its long term growth trend ► The Business cycle is the more or less regular pattern of expansion (recovery) and contraction (recession) in economic activity around the path of trend growth. At cyclical peak‚ economic activity is high relative to trend At a cyclical trough‚ the low
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perspective may seem like a significant increase‚ from a country’s perspective the growth is mediocre. This growth in real GDP ranks Uruguay as 94th world-wide in GDP purchasing power parity. Uruguay’s economy is in an expansionary peak phase of the Business Cycle as evidenced by the fact that GDP (purchasing power parity) was $44.029 billion in 2009 due to the world-wide economic crisis as a result of the United States’ Great Recession. Therefore the 2013 Uruguay rGDP of $56.27 billion shows a strong rebound
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