Business Economics - The Business Cycle

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Business Economics - The Business Cycle

Over the long term, economies usually display an underlying positive rate of growth, sometimes known as the trend growth rate. This is likely to reflect, among other factors, the average level of investment. Investment also plays a key role in the business cycle, sometimes known as the "trade cycle", the pattern of fluctuations around the trend. A variety of different economic indicators shows cyclical movements of expansion and contraction in economic activity over time. Some of these indicators rise in periods of economic expansion. They are known as "pro-cyclical" indicators and include the rate of growth of consumer spending, job vacancies and investment. Other indicators (the so-called "counter-cyclical" indicators) fall in periods of economic expansion, such as unemployment and the number of bankruptcies.

The sites below provide detailed information about business cycle analysis, in particular by reference to financial indicators and quantitative macroeconomic techniques.

Quantitative Economics and Real Business Cycle Home Page

This is a very well resourced site - A collection of links to several resources about quantitative macroeconomics and especially real business cycle (RBC) theory on the World-Wide Web.The site is maintained by Christian Zimmerman, who also maintains EDIRC (Economics Departments, Institutes and Research Centres in the World), which can also be found in the Biz/ed Internet Resources Catalogue. Students are advised that this site contains some technical features which goes beyond the knowledge assumed in a course of elementary business economics. However, students with a strong technical background may find this site both challenging and stimulating.

Further Reference

Business Cycle Indicators Homepage

This site is provided by Professor Nouriel Roubini, at the Leonard N. Stern School of Business, New York University. This is an excellent introduction to the theory and practice of business cycles. The site also includes links to other business cycle indicators and other macro data.

This is a very well resourced site - A collection of links to several resources about quantitative macroeconomics and especially real business cycle (RBC) theory on the World-Wide Web.

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