Since 2014
The True Cause of Business Cycle
European Journal of Business and Economics
View Archive Info| Field | Value | |
| Title |
The True Cause of Business Cycle
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| Creator |
Chiung, Ting Chao; Michigan State University, East Lansing
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| Subject |
Business Cycle, Cause, Credit Cycle
E32 |
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| Description |
Cause and impulse are different. Cause creates an economic mechanism in which impulses propagate effect. If we remove cause, impulses propagate nothing. In credit economy, I derive an economic mechanism from economic agents’ budget constraint interactively in which effects arising from impulses are comovement. This economic mechanism does not exist in noncredit economy while all impulses are active. Thus, loan is the true cause of business cycle. Business cycle is inherent in credit economy. If we remove loan from the world we live in, we eliminate business cycle completely and permanently.
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| Publisher |
CBU, o.p.s.
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| Contributor |
—
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| Date |
2012-03-01
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://ojs.journals.cz/index.php/EJBE/article/view/157
10.12955/ejbe.v4i0.157 |
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| Source |
European Journal of Business and Economics; Vol 4 (2012)
1804-9699 10.12955/ejbe.v4i0 |
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| Language |
eng
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| Relation |
http://ojs.journals.cz/index.php/EJBE/article/view/157/161
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| Rights |
Copyright (c) 2012 Ting Chao Chiung
https://creativecommons.org/licenses/by/3.0/ |
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