IDEAS home Printed from https://ideas.repec.org/a/ime/imemes/v37y2019p99-126.html

Interaction between Business Cycles and Economic Growth

Author

Listed:
  • Sohei Kaihatsu

    (Director, Research and Statistics Department, Bank of Japan (currently, International Monetary Fund, E-mail: SKaihatsu@imf.org))

  • Maiko Koga

    (Director, Research and Statistics Department, Bank of Japan (E-mail: maiko.koga@boj.or.jp))

  • Tomoya Sakata

    (Associate Director, Research and Statistics Department, Bank of Japan(E-mail: tomoya.sakata@boj.or.jp))

  • Naoko Hara

    (Deputy Director, Research and Statistics Department (currently, Institute for Monetary and Economic Studies), Bank of Japan (E-mail: naoko.hara@boj.or.jp))

Abstract

In the aftermath of the recent global financial crisis, advanced economies have faced sluggish recoveries or long-lasting economic slowdowns. This experience has challenged the conventional dichotomy of business cycles and economic growth, which has long been central to macroeconomic analysis. Against this backdrop, we review the literature regarding the relationship between business cycles and economic growth. This study consists of three parts. First, we provide basic ideas about the relationship between business cycles and economic growth, and a simple empirical analysis on economic growth rates in advanced economies. Second, we survey studies exploring the effects of business cycles on economic growth. Specifically, we focus on hysteresis effects caused by labor market structure, firm activity, and fiscal policy. Third, we review the literature on the effects of economic growth on business cycles, through mechanisms such as technological progress and population aging.

Suggested Citation

  • Sohei Kaihatsu & Maiko Koga & Tomoya Sakata & Naoko Hara, 2019. "Interaction between Business Cycles and Economic Growth," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 37, pages 99-126, November.
    • Handle: RePEc:ime:imemes:v:37:y:2019:p:99-126
    as

    Download full text from publisher

    File URL: https://www.imes.boj.or.jp/research/papers/english/me37-6.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shunsuke Haba & Yuichiro Ito & Shogo Nakano & Takahiro Yamanaka, 2024. "Assessing the Long-Term Impact of Monetary Policy," Bank of Japan Working Paper Series 24-E-19, Bank of Japan.
    2. Taheri, Abouzar & Nessabian, Shahriyar & Moghaddasi, Reza & Arbabi, Farzin & Damankeshideh, Marjan, 2020. "Business Cycles in Some Selected Oil Producing Countries: Iran versus Three OECD Members," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 27(01).
    3. Koki Kyo & Hideo Noda & Genshiro Kitagawa, 2022. "Co-movement of Cyclical Components Approach to Construct a Coincident Index of Business Cycles," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 18(1), pages 101-127, March.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ime:imemes:v:37:y:2019:p:99-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kinken (email available below). General contact details of provider: https://edirc.repec.org/data/imegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.