Archive for July, 2009
Business Cycles Aren’t All Bad
It’s a matter of trust
Most economists today consider business cycles to be credit cycles. In other words, they have to do with public confidence, or trust, in our economic infrastructure. When confidence is high, credit flows and economic activity increases. Eventually, confidence reverts to the mean and below, before repeating the cycle. More deeply considered, all economic activity has to do with trust. The story of the development of that trust from personal to infrastructural is the focus of this article.
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