Economic cycle
Also called: business cycle, economic cycles
The pattern of expansion, slowdown, contraction and recovery that economies move through. Its phases vary greatly in length.
Turns in the cycle are driven by interest rates, credit, commodity prices, policy and shocks. They are clear only in hindsight. Share prices reflect expected profits, so markets usually turn before the economy does.
Learn more in these lessons
- Economic cycles and recessionsHow do economies move through cycles, and why do markets turn first?
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