during the 1920s the united states economy moved through the bubble phase of the business cycle.
during the 1920s the united states economy moved through the bubble phase of the business cycle.
during the 1920s the united states economy move through which phase of the business cycle?
bubble
one alternative theory is that the primary cause of economic cycles is due to the credit cycle: the net expansion of credit (increase in private credit, equivalently debt, as a percentage of gdp) yields economic expansions, while the net contraction causes recessions, and if it persists, depressions. in particular, the bursting of speculative bubbles is seen as the proximate cause of depressions, and this theory places finance and banks at the center of the business cycle.
business cycle
another major criticism is that real business cycle models can not account for the dynamics displayed by u.s. gross national product. as larry summers said: "(my view is that) real business cycle models of the type urged on us by [ed] prescott have nothing to do with the business cycle phenomena observed in the united states or other capitalist economies." —









































section::::see also.









































bullet::::- austrian business cycle theory









































bullet::::- business cycle









































bullet::::- dynamic stochastic general equilibrium









































bullet::::- lucas critique









































bullet::::- monetary-disequilibrium theory









































bullet::::- new classical economics









































bullet::::- new keynesian economics









































bullet::::- say's law









































bullet::::- welfare cost of business cycles
real business-cycle theory