Recessions: Prospects and Developments : Prospects and Developments

✍ Scribed by Nerea M. Pérez; June A. Ortega

• Publisher: Nova Science Publishers, Incorporated
• Year: 2008
• Tongue: English
• Leaves: 184
• Edition: 1
• Category: Library

✦ Synopsis

A critical consideration in understanding business cycles is the amplification and propagation of shocks to the economic system. Many recessions seem to arise without a clearly identifiable cause or at least one of significant magnitude to justify an economy-wide recession. How can a small shock cause large changes in the economy? What are the mechanisms that amplify a modest shock such that a serious recession ensues? Despite the persistent search for a mechanism for business cycle amplification and propagation, much research in business cycles seems to ignore the likely role of the financial system. If a shock to the economy inhibits the capital allocation capability of an economy, then a seemingly mild shock may be amplified through its impact on new investment thereby snuffing out economic growth and causing a recession. This book provides new research on the field of recessions from around the globe.

✦ Subjects

Recessions. ; Business cycles. ; Economic forecasting.