Kitchin cycle
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The Kitchin cycle is a proposed short business cycle lasting roughly three to five years. It is named after British statistician Joseph Kitchin, who identified recurring fluctuations in economic and financial data.
The cycle is commonly associated with inventories and delays in the flow of information. Firms may continue increasing production after demand has weakened because they do not immediately recognise the change.
Excess inventories then accumulate, prompting businesses to reduce production and orders. Once stocks are depleted and demand improves, firms begin increasing output again, creating another expansion in the inventory cycle.
Kitchin cycles are often discussed as one component of broader economic fluctuations alongside longer Juglar, Kuznets, and Kondratiev cycles. Their regularity and independence remain debated because modern inventory systems, policy, technology, and shocks can alter the timing.
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- Source / publisher: Wikipedia
- URL type: WWW
- Credits: Wikipedia
- URL: https://en.wikipedia.org/wiki/Kitchin_cycle