Juglar cycle
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The Juglar cycle is a proposed medium-term business cycle lasting approximately seven to eleven years. It is named after French economist Clément Juglar, who studied recurring patterns of prosperity, crisis, and liquidation.
Juglar associated these cycles with changes in fixed investment, credit, banking activity, and business confidence. During expansion, firms borrow and invest in factories, machinery, construction, and productive capacity.
As investment and debt accumulate, profitability may weaken, credit conditions tighten, and financial stress increase. A crisis or contraction reduces investment and clears unprofitable projects before recovery begins.
The Juglar cycle became an important concept in classical business-cycle theory. Modern economists generally view economic fluctuations as the result of multiple interacting forces rather than a single regular cycle of fixed length.
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- Source / publisher: Wikipedia
- URL type: WWW
- Credits: Wikipedia
- URL: https://en.wikipedia.org/wiki/Juglar_cycle