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Many economists have hypothesized that business cycles are the result of the politically motivated use of macroeconomic policies (financial and monetary policies) which can be designed to serve the interest of politicians operating for re-election. The idea of political enterprise cycles is based on the belief that elected officers (the president, members of congress, governors, and many others.) generally tend to engineer expansionary macroeconomic policies to be able to support their re-election efforts.
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More particular theories of cycles must therefore concentrate on particular explanation why there have been or have to be vital and fast adjustments in costs or demand. Examples of economy-huge costs which could rise to choke off income embrace labor, interest rates, uncooked supplies corresponding to oil, pure occurrences akin to droughts, and taxation. Henry George’s principle factors to land and lease prices; the Austrian college focuses … Read More...