Boom and Bust. A Brief Analysis of the Financial Cycle and its Lessons

Term Paper , 2019 , 37 Pages , Grade: 1.3

Economics - Economic Cycle and Growth

This paper mainly analyzes the implications of the financial cycle and its interactions with the traditional business cycle. Using frequency-based filter and turning-point analysis to measure duration, amplitude and evolution of the financial cycle it is shown, that the results of both approaches for the financial cycle are similar and fit the actual dates well.

Further, it is found find that although financial and economic cycles are completely different, they are closely related.The financial cycle significantly amplifies fluctuations in the real economy. Other issues such like optimal monetary and fiscal policies and potential warning indicators are also analyzed.

Table of Contents

List of Tables/Figures

1. Introduction

2. Theory of the Financial Cycle
2.1 Identification of the Financial Cycle: Measurement and Empirical Regularities
2.1.1 Indicators and Approaches
2.1.2 Basic Features and Characteristics
2.2 Financial Cycle and Business Cycle: Interactions

3. The Financial Cycle: Challenges and Implications
3.1 Theoretical Derivation and Reflections
3.2 Challenges, Warnings and Coping Strategies

4. Conclusions

References

Annex Table

• College: University of Göttingen (Wirtschaftswissenschaftliche Fakultät)
• Course: International Financial Market
• Grade: 1.3
• Author: Qian Ding (Author)
• Publication Year: 2019
• Pages: 37
• Catalog Number: V512067
• ISBN (eBook): 9783346098689
• ISBN (Book): 9783346098696
• Language: English
• Tags: business cycle, financial cycle, financial crisis, monetary policy