A term used in economics to designate cyclical changes in the economy. Since the Industrial Revolution, the level of business activity in industrialized countries has veered from high to low and back up again. The timing of a cycle is not predictable, but its phases seem to be. Many economists cite four phases: prosperity, liquidation, recession or depression, and recovery; using the terms originally developed by the American economist Wesley Mitchell.
« Back to Glossary IndexBy: Arman Abdul Rahman