Tag Archives: business cycle

Macroeconomics and the Financial Cycle: Hamlet without the Prince?

by Claudio Borio, Voxeu.org Since the early 1980s, the financial cycle has re-emerged as a major force driving the macroeconomy, but economic analysis has not caught up. This column argues that macroeconomics without the financial cycle is like Hamlet without … Continue reading

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Business Cycle Forecasting: The First-Rate Results of Robert F. Dieli

by Jeff Miller This article is probably the most exhaustive and challenging piece I have written.  It was worth the effort because understanding the business cycle is crucial to making great investment decisions.  To get the full benefit, I urge … Continue reading

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Best Recession Forecaster: Robert F. Dieli

by Jeff Miller Since last May I have been reviewing the record of those who forecast the business cycle. I developed a stringent list of requirements, “Jeff’s Acid Test,” and I frequently invited nominations. Here were the stated requirements: Openness … Continue reading

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Evaluating Recession Forecasts: Read Critically

by Jeff Miller For investors who believe that stocks eventually reflect the fundamental strength of the companies, understanding the business cycle is crucial. Since popular sentiment and stock prices are often excessively negative about economic prospects, there is great opportunity … Continue reading

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Modeling a Multisectoral Economy

It is possible to model the dynamic process by which prices and outputs are set in a multisectoral economy. The failure of the neoclassical school to achieve this objective—which it has had since the time of Walras—may relate to the abstractions it made with the intention of making this process easier to model. Failures are derived from lack of attention to money and to uncertainty. A major fault may be laid at the feet of “rational expectations.” Continue reading

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Normalized GDP is the “Real” Growth

Normalizing GDP to population gives a much more meaningful description of the business cycle, especially for the recovery phase. Continue reading

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Business Cycle Drivers

The primary driver of recovery and expansion is demand. There are many traps related to monetary issues in the down portion of the business cycle, but ultimately monetary factors are symptoms of depression and not the primary drivers. Continue reading

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Depression: The Forgotten Part of the Business Cycle

Economic robustness is reflected by the strength of recovery. In the business cycle, recession plus recovery defines a depression of economic activity below prior levels. Continue reading

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