Business Cycle Fluctuations: why are so undesirable?

Sajawal Khan

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract The main focus of macroeconomic policies around the world is the stabilization of business cycles fluctuations. The policy makers, economists, producers and households are all concerned about the swings in economic activities and want to mute them down. The question arises why these fluctuations are so undesirable and everyone is too much worried about them. The main reason behind these concerns is. 1) Business cycle fluctuations lowers the lifetime discounted income/ consumption in the economy. 2) These fluctuations also affect distribution of income in the society. 3) These negatively affect the long run potential level of the economy. The focus of this study is to investigate; whether the business fluctuations affect long run potential level; and the role and importance of asymmetries in the behavior and impacts of these fluctuations.

Keywords: Business Cycles; Asymmetries; Macroeconomic Polies (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2018-10-14, Revised 2019-01-12
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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