This work did not generate interest among classical economists, though underconsumption theory developed as a heterodox branch in economics until being systematized in Keynesian economics in the 1930s.Sismondi's theory of periodic crises was developed into a theory of alternating cycles by Charles Dunoyer, and similar theories, showing signs of influence by Sismondi, were developed by Johann Karl Rodbertus.In determining the chronology of the euro area business cycle, the CEPR Committee adopted a definition of a recession similar to that used by the National Bureau of Economic Research (NBER), which has for many years dated the US business cycle.The Committee had to adapt the NBER definition, however, to reflect specific features of the euro area.The length of a business cycle is the period of time containing a single boom and contraction in sequence.These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Despite boasts during the boom years of the late 1990s about taming business cycle downturns, the U. economy slumped into a recession that lasted from March 2001 until November 2001.This recession ended a ten-year period of expansion in the national economy, the longest expansion in U. history according to the National Bureau of Economic Research (NBER). A private, nonprofit, nonpartisan research organization founded in 1920, the NBER is dedicated to understanding how the economy works.
See The CEPR and NBER Approaches What data does the Committee use?
Why doesn’t the Committee accept the two-quarter definition?
The Committee’s procedure for identifying turning points differs from the two-quarter rule in a number of ways.
The common or popular usage boom-and-bust cycle refers to fluctuations in which the expansion is rapid and the contraction severe.
The first systematic exposition of periodic economic crises, in opposition to the existing theory of economic equilibrium, was the 1819 Nouveaux Principes d'économie politique by Jean Charles Léonard de Sismondi. Sismondi found vindication in the Panic of 1825, which was the first unarguably international economic crisis, occurring in peacetime.