The Essence Of Boom-Bust Cycles

Source: Cobden Centre
by Dr. Frank Shostak

“By stating that business cycles are about swings in the data, the [National Bureau of Economic Research] says nothing about what business cycles are all about. One only describes fluctuations in the data. One however, does not explain these fluctuations. In order to ascertain what business cycles are, one requires to identify the essence – the driving force behind these cycles. The key in the analysis of the data is to establish the subject of analysis. Once the subject is established, the next step is to form the essence the definition of the subject. To establish the definition of the boom-bust cycles we must ascertain how this phenomenon had emerged.” (03/15/23)