Keywords:economic cycle, financial pyramid, liquidity trap, monetary aggregate, monetary base, money multiplier, overcapitalization, overheating of the economy, real interest rate
Citation: Sergey Trofimov (2009). New theory of economic cycles, crises, and macroeconomic balance. Russian Journal of Entrepreneurship, 10(7), 4-8. — url: http://bgscience.ru/com/lib/1741
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Abstract:
The Purpose of this research is analysis of causes and mechanisms, that cause the economical cycles and crises. In this research author gives hypothesis of origin of economical cycles, that is based on the modifying equation of money turnover proposed by the author. On the basis of this equation was suggested a new model of the macroeconomic balance. Disturbance of this balance leads to beginning of economical cycles and crises.