Boom and bust cycle

Boom and bust cycle,

Definition of Boom and bust cycle:

  1. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors. In the subsequent bust the economy shrinks, people lose their jobs and investors lose money. Boom-bust cycles last for varying lengths of time; they also vary in severity.

  2. The boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle.

  3. An up and down cycle in the economy whereby several events take place that increase business activity . Shortly afterwards, more events take place in the economy that decrease business activity. Typically, this type of cycle will repeat itself.

How to use Boom and bust cycle in a sentence?

  1. The boom and bust cycle describes alternating phases of economic growth and decline typically found in modern capitalist economies.
  2. First anticipated by Karl Marx in the 19th century, the boom bust cycle is driven just as much by investor and consumer psychology as it is by market and economic fundamentals.
  3. The cycle can last anywhere from several months to several years, with the average length being approximately 5 years going back to the 1850s.

Meaning of Boom and bust cycle & Boom and bust cycle Definition