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"These cyclical fluctuations could in turn be transmitted to, and mirrored, in greater cyclical instabilities in the wider economy".
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Over the last two centuries, those areas endured a growing capitalism's mix of horrific working conditions, urban slums, environmental degradation, and cyclical instability.
Is it cyclical or non-cyclical?
Tourism, real estate, construction and other cyclical sectors influenced by economic and political instability have been struggling.
As with the multiplier, it cannot of itself explain cyclical movements; it merely accounts for a fundamental instability that Keynesians thought they had observed.
Temple (2000) decomposed a price time series into trend, seasonality, and instability components as follows: where Y = price time series of a given product, Ʈ = trend component, S = season component or seasonality index, C = cyclical component, and Ir = irregular component associated with instability.
"I support the goal of financial stability and do not believe that accounting standards and financial reporting should be purposefully designed to create instability or pro-cyclical effects," Mr. Herz said.
"The added savings of the increasingly affluent must be loaned to balance total current expenditure," he writes, "but increasing indebtedness implies financial fragility, periodic financial crises, greater volatility of aggregate income and, as governments respond to mass unemployment with counter-cyclical fiscal policies, a compounding instability of public finances".
Cyclical vomiting.
Fad diets are cyclical.
Success is often cyclical.
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