Crossword Solver > found answer > PROCYCLICALANDCOUNTERCYCLICALVARIABLES (procyclical and countercyclical variables)

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procyclicalandcountercyclicalvariables

procyclical and countercyclical variables

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Definitions of procyclical and countercyclical variables in various dictionaries:

PROCYCLICAL AND COUNTERCYCLICAL VARIABLES - Procyclical and countercyclical variables are variables that fluctuate in a way that is positively or negatively correlated with fluctuations in gros...

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Procyclical and countercyclical variables description
Procyclical and countercyclical variables are variables that fluctuate in a way that is positively or negatively correlated with fluctuations in gross domestic product (GDP). The scope of the concept may differ between the context of business cycle theory and that of economic policy–making. * The concept is often encountered in the context of a government's approach to spending and taxation. A 'procyclical fiscal policy' can be summarised simply as governments choosing to increase government spending and reduce taxes during an economic boom, but reduce spending and increase taxes during a recession. A 'countercyclical' fiscal policy takes the opposite approach: reducing spending and raising taxes during a boom period, and increasing spending and cutting taxes during a recession.

Procyclical and countercyclical variables description

Procyclical and countercyclical variables are variables that fluctuate in a way that is positively or negatively correlated with fluctuations in gross domestic product (GDP). The scope of the concept may differ between the context of business cycle theory and that of economic policy–making.
* The concept is often encountered in the context of a government's approach to spending and taxation. A 'procyclical fiscal policy' can be summarised simply as governments choosing to increase government spending and reduce taxes during an economic boom, but reduce spending and increase taxes during a recession. A 'countercyclical' fiscal policy takes the opposite approach: reducing spending and raising taxes during a boom period, and increasing spending and cutting taxes during a recession.

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