The length of a business cycle is the period of time containing a single boom and contraction in sequence. 7 to 11 years long, although he cautiously did not claim any rigid regularity. There were also significant increases in productivity in the years leading up to the Great Depression. Both the Long and Teori elliot wave pdf Depressions were characterized by overcapacity and market saturation.
Over the period since the Industrial Revolution, technological progress has had a much larger effect on the economy than any fluctuations in credit or debt, the primary exception being the Great Depression, which caused a multi-year steep economic decline. 22 in 1990, measured in 2010 dollars. There were similar increases in real wages during the 19th century. World War II were generally more restrained than the earlier business cycles. 1970s, which discredited the theory. 2010 has been an ongoing depression, with real income still lower than in 1989. Business cycles are not merely fluctuations in aggregate economic activity.
The economy of the western world is a system of closely interrelated parts. He who would understand business cycles must master the workings of an economic system organized largely in a network of free enterprises searching for profit. The problem of how business cycles come about is therefore inseparable from the problem of how a capitalist economy functions. An expansion is the period from a trough to a peak, and a recession as the period from a peak to a trough.