1Business Cycle
The set of recurring but not periodic fluctuations fluctuations that affect several sectors of the economy jointly
2Stages of the Business Cycle
Peak, trough, boom/expansion, recession/contraction, depression
3 Cyclicality
Procyclical, countercyclical, acyclical
4Timing
Leading, lagging, coincident
6Alternative View (Hyman Minsky, 1919-1996)
The endogenous response to what happened in expansions, exuberance and irrationality
7Movement of Interest Rates
Endogenous response to inflation.Exogenous response to real interest rates
8Policy Rate Variations
Fall in real interest rate is loosening/expansion. Rise in interest rate is tightening/contraction