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Эндогенная Природа Экономического Цикла: Операциональная Замкнутость, Рекурсивная Организация И Форвард-Модель Цикла Жюгляра
[Endogenous Nature of the Economic Cycle: Operational closure, recursive organization, and a forward model of the Juglar cycle]

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  • Leiashvily, Paata

Abstract

This paper argues that the medium-term Juglar business cycle is an intrinsic property of an operationally closed economic system rather than a response to external shocks. The oscillation is treated as an emergent property of a network of economic actions rather than an aggregate of individual agents: this distinguishes the approach from agent-based modeling and brings it close to the rule-based evolutionary ontology of micro–meso–macro. It is shown that, through positive and negative feedback, the recursive organization of economic processes necessarily generates endogenous oscillations typical of complex nonlinear systems. During a crisis the structural disproportions that accumulated in the upswing are eliminated. The paper examines the competitive self-regulation mechanism in its pure form, as a necessary precondition for understanding how the economy functions under real-world conditions of monopolization, financialization, and so on. The cycle is shown to move along a trajectory between two turning points — “producers are unwilling to produce more” and “consumers are unwilling to consume less.” The gradual upswing and the sharp crash are explained structurally: breaking an economic link requires only one party’s decision, whereas restoring it demands coordination among all parties. A forward model is presented that reproduces this dynamics without any external driver, and two crisis circuits are identified — commodity and financial. The paper concludes that anti-crisis policy based on supporting aggregate demand is ineffective: the crisis is merely postponed, while structural distortions persist, accumulate, and eventually lead to a deeper crisis.

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References listed on IDEAS

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  1. Hyman P. Minsky, 2004. "Induced Investment and Business Cycles," Books, Edward Elgar Publishing, number 2947 edited by Dimitri B. Papadimitriou.
  2. Leiashvily, Paata, 2020. "Macroeconomic Order from Microeconomic Chaos," MPRA Paper 102436, University Library of Munich, Germany.
  3. Leiashvily, Paata, 2017. "The Relativity Theory of General Economic Equilibrium," MPRA Paper 83291, University Library of Munich, Germany.
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JEL classification:

  • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
  • D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other
  • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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