Economic cycle

Similar financial terms

Economic indicators
Statistical indexes, rates, and other measurements of national financial and social trends, used to predict overall business climate and growth patterns.

Leading economic indicators
Economic series that tend to rise or fall in advance of the rest of the economy.

European Economic Area (EEA)
The European Economic Area (EEA) came into being on 1 January 1, 1994 following an agreement between the European Free Trade Association (EFTA) and the European Union (EU). It was designed to allow EFTA countries to participate in the European Single Market without having to join the EU. In a referendum, Switzerland (ever keen on neutrality) chose not to participate in the EEA (although it is linked to the European Union by bilateral agreements similar in content to the EEA agreement), so the cu ...

Macroeconomics
The subdivision of the discipline of economics that studies and strives to explain the functioning of the economy as a whole -- the total output of the economy, the overall level of employment or unemployment, movements in the average level of prices (inflation or deflation), total savings and investment, total consumption and so on. The focus of much of macroeconomic theory is analysis of the ways in which conscious government policies (and the unintended secondary consequences of these policie ...

Keynesian Economics
The economic theory that active government intervention in the marketplace and monetary policy is the best method of ensuring economic growth and stability.

Country economic risk
Developments in a national economy that can affect the outcome of an international financial transaction.

Microeconomics
The subdivision of the discipline of economics that studies the behavior of individual households and firms interacting through markets, how prices and levels of output of individual products are determined in these markets, the interconnections by which different markets affect each other, and how the price mechanism allocates resources and distributes income.

Classical Economics
The dominant theory of economics from the 18th century to the 20th century, when it evolved into neo-classical economics. Classical economists, who included Adam Smith, David Ricardo and John Stuart Mill, believed that the pursuit of individual self-interest produced the greatest possible economic benefits for society as a whole through the power of the "Invisible hand". They also believed that an economy is always in equilibrium or moving towards it. Equilibrium was ensured in the labor mar ...

Green economics
The study of environmental issues including the depletion of non renewable resources.

Economic rent
A surplus paid to any factor of production over its supply price. Economic rent is the difference between what a factor of production is earning (its return) and what it would need to be earning to keep it in its present use. It is in other words the amount a factor is earning over and above what it could be earning in its next best alternative use (its transfer earnings).

European Economic Community (EEC)
Now incorporated in the European Union (EU).

Business cycles
The patterns of fluctuation in growth patterns experienced by business caused by overall econimoc and financial trends, competitive forces and the nature of supply and demand. Cycles are predictable in patterns but not always in durations.

Replacement cycle
The frequency with which an asset is replaced by an equivalent asset.

Product cycle
The time it takes to bring new and/or improved products to market.

Operating cycle
The average time intervening between the acquisition of materials or services and the final cash realization from those acquisitions.

Market cycle
The period between the 2 latest highs or lows of the S&P 500, showing net performance of a fund through both an up and a down market. A market cycle is complete when the S&P is 15% below the highest point or 15% above the lowest point (ending a down market). The dates of the last market cycle are: 12/04/87 to 10/11/90 (low to low).

Business cycle
Repetitive cycles of economic expansion and recession.

Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable.

Cash cycle
In general, the time between cash disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period.