Analyzing Economic & Business Cycles
What are Economic Cycles?
In general, economic cycles are the time periods between growth (economic expansion) and recession (economic contraction). The duration of each economic cycle is determined by key macroeconomic factors such as GDP growth, National Income, Inflation, Consumption, and last but not least, the level of Employment. The debt cycle is the key to each economic cycle.
The Role of Central Banks to the Duration of each Economic Cycle
What matters the most for a central bank is to have high employment and sustainable growth by controlling inflation.