Economics pp 241-255 | Cite as

Business Cycles: Causes and Control

  • Chris Mulhearn
  • Howard R. Vane
Part of the Macmillan Foundations book series (PAFS)


The purpose of this chapter is to examine the debate over the cause and control of business cycles. At the centre of the debate lie a number of fundamental questions, most notably:
  • Is the economy inherently stable?

  • What is the main source of shocks that affect the economy?

  • How long does it take for the economy to self-equilibrate once subjected to a shock?

  • Can the authorities intervene to reduce fluctuations in economic activity?


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Further reading

  1. Morgan, B. and J. R. Shackleton ‘The ups and downs of business cycle theory’ in Shackleton, J. R. (ed.) New Thinking in Economics (Aldershot: Edward Elgar, 1990). Provides a deftly written survey of business cycle theory.Google Scholar
  2. Friedman, M. The Counter-Revolution in Monetary Theory (London: Institute of Economic Affairs, 1970). An accessible non-technical discussion, which places the monetarist counterrevolution in historical perspective, and describes the central propositions of monetarism.Google Scholar

Copyright information

© Chris Mulhearn and Howard R. Vane 1999

Authors and Affiliations

  • Chris Mulhearn
  • Howard R. Vane

There are no affiliations available

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