Business cycles, seasonal cycles, and common trends

Article Abstract:

The effects of real business cycle (RBC) models, which are based on neoclassical growth theories, to long-run economic growth have been studied. The RBC theory proposed that some aggregate economic variables, such as output, consumption, and investment, will eventually share a common stochastic trend despite having individual positive growth. The study showed that RBC cannot determine and adjust seasonal changes of aggregate variables by using unadjusted data and cannot support a common long-run trend of these variables. It also showed that seasonality varies depending upon a country's economic condition.

Consumption (Economics), Seasonal variations (Economics)

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Political business cycles when real activity is persistent

Article Abstract:

This article investigates the relationship between political business cycles and persistence in unemployment and output. Findings indicate that even limited amounts of persistence may significantly impact political business cycles and that fiscal and monetary policies become less restrictive as elections approach to help stimulate the national economy.

Switzerland, Economic aspects, Elections, Unemployment, Monetary policy

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External debt and fiscal adjustment in anti-inflation programs

Article Abstract:

This article examines the effects of adjustments in fiscal policy on inflation rates in nations with external debts. Findings indicate that the effects of policy adjustments associated with anti-inflation programs are mediated by exchange rate movements incorporated in methods used to decrease budget deficits.

United States, Budget, Budgeting, Budgets, Exchange, External debts

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