economy policy

Economy policy in difficult times: the risk of trying to drive the economy back to the peak of the cycle

Economy Policy in Difficult Times: The Risk Of Trying To Drive The Economy Back To The Peak Of The Cycle

José Ramón Díez Guijarro (Bankia Estudios) | Economic cycles are inexorable, reflecting the dynamics of economic markets, summed up by Schumpeter as the process of “creative destruction”. After the initial recovery of the expansionary phase comes the tipping point, with growth superior to potential, to later enter in the slowdown phase, in which there is a gradual convergence with trend rhythms of growth and the negative output gap closes.