Essays on Business Cycles

U.S. Trade Deficit The US has been running the significant trade deficit over the last four decades. As a result, the country is the biggest debtor in the world with almost $3 trillion net debt. Obviously, this situation raises concerns among many researchers and policymakers, as they suggest that the long-run trade and current account deficits might make devastating effect on the growth performance. Actually, the issue is quite controversial and debatable: for example, other researches claim, that trade deficit is merely the result of the effective re-allocation of resources in the global economy and there is no consequences, ...

Prior to the Great Depression policy makers in the United States generally tended to accept that business cycles happened and in accord with Adam Smith's "invisible hand," tended to be self-correcting. The stock market crash of 1929, and the more general problem of massive unemployment forced a reconsideration. Smiley (2008) and Bernstein (2016) both point out that the human face of the Depression left no choice but for some government intervention. Jahan and Papageorgiou (2014), discussing Keynesian Economics put it plainly: “The central tenet of this school of thought is that government intervention can stabilize the economy.” The centerpiece ...

Eclectic Forecasting Research Paper

1. The year 2007 is the third year of a series of three consecutive years of broad-based growth in the world. Although developed economies and underdeveloped economies had a world average growth of 3.4 % in 2007 with a previous growth of 4.9 in 2006, the perspective for that year was to an increase in the world growth in 2008 with a value of 3.6% (QUOTE). In the year 2006, 96 of 159 economies of the world increased their gross domestic product with a value higher than 3%, and only nine countries had a negative growth in 2006. The challenge ...

Abstract

The current paper explores the main differences of the Great Recession in 2007-2009 from other economic collapses in the history if the United States. Section I discusses the general features of a recession and describes the main responsibilities of the National Bureau of Economic Research. Section II is devoted to the comparison of the Great Recession with the recession of 1980s. The section is divided into four subsections. Subsection A presents the basic comparison of recessions in the U.S. history and explains the choice of the 1980s period for the further comparison. Subsection B explores differences in unemployment in ...

Business Cycle Case Study

Introduction Business cycle refers to the unsteadiness in business activities within a given economy over a given time. The business cycles are mainly characterized by periods of recession or expansion. During periods of expansion, the economy is experiencing growth, this is indicated by factors such as; increase in the rate of employment, increase in production processes within industries and increase in sales as well as incomes. The period of recession is when the economy is experiencing a contraction. Indicators of contraction in an economy are; unemployment, decrease in production processes and a decrease in sales and incomes.( Stock, pp ...

Abstract

This paper gives an insightful preview of the Panama's economy. It analyzes key data from the current major economic indicators to comprehend the state or nature of Panam. The analyzes espouse data and statistics drawn from the Panamanian Bureau of Statistics and Economic portfolios. It analyzes both the endogenous, exogenous economic factors, as well as their impact on the Panamanian economy. One of the most conspicuous endogenous factors is the Panama’s unsustainable development growth models. Its economic growth mostly focuses on the economic indicators while ignoring critical and pressing aspects such as social as well as environmental problems. ...