Growth and Business Cycles - Essay Example

Only on StudentShare

Extract of sample
Growth and Business Cycles

With inventory control, we are speaking about the promising factor that inventories do propagate and amplify other fluctuations. On the other hand, on the discussion of growth of services, we are instead speaking in regards to the significant fact that the decline of manufacturing and the rise of services should be helping to reduce volatility, this being mainly because the demand for services is usually more stable than demand for manufacturers.
The factor of better governments is highly relevant to this positive point of view as well, in that most central banks have learned to manage the economy so well that "it is sometimes argued, that they have more or less abolished the cycle." (The Economist, London, Oct 23, 1999, Anonymous).
Globalization is another crucial factor, and at least at first sense seems to make perfect sense and fit properly into the optimist's point of view. This is because increasing integration with the global economy reduces the dependence of the American economy on certain domestic demand, and "it also opens new channels of supply, reducing inflationary pressures on costs and wages." (The Economist, London, Oct 23, 1999, Anonymous).
However, even with an optimistic p ...
Download paper


In discussing the future of business cycles in the United States, I am personally rather an optimist. This is primly due to the fact that I believe in today's world people for the most part are sort of helpless spenders. More money is being made by more people in various different fashions, and that figure does not seem to be slowing down in any way…
Author : emmykessler

Related Essays

Property Cycle
Recent studies have shown that fluctuations in property cycle produces economic adversity to certain areas such as property, finance, socio-economic performance and have profound international impacts (Cedic Pugh and Alireza, 2001). The recent economic and financial crisis developed in ASEAN countries on the overheated property investments is suspected to be the main cause for this.
30 pages (7530 words) Research Paper
Stock Market Cycles
Although the political world affects the stock market in the short term the market recovers quickly.
3 pages (753 words) Essay
Innovation and Business Growth
Where do the other ideas or research efforts go They get into the vast Knowledge Management databases which is available to the organization as part of core business knowledge for future reference. All these products are a result of dollar intensive and highly sophisticated research which actually delves into the minds of end-consumers in a very concerted effort to focus the mind of the consumer on the company's products, services and processes.
12 pages (3012 words) Essay
Real Business Cycles
It is not, however, straightforward to see this, because the RBC conjecture is advanced jointly with a claim that models should be assessed using a novel strategy. We must therefore evaluate the conjecture and the assessment strategy simultaneously.
19 pages (4769 words) Essay
Economics for Business Essay
Parkin and Bade go on to explain: A business cycle is not a regular, predictable, or repeating phenomenon like the swing of the pendulum of a clock. Its timing is random and, to a large degress, unpredictable. A business cycle is identified as a sequence of four phases:
5 pages (1255 words) Essay
Finance and Growth Strategies Essay
The results are shown in Table 1.
13 pages (3263 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!