What does procyclical mean in economics?
What does procyclical mean in economics?
Strictly speaking, procyclicality refers to the tendency of financial variables to fluctuate around a trend during the economic cycle. Increased procyclicality thus simply means fluctuations with broader amplitude. Such a simple description seldom fits the behaviour of financial systems in real life.
When a macroeconomic variable is procyclical?
That is, any quantity that tends to increase in expansion and tend to decrease in a recession is classified as procyclical. Gross Domestic Product (GDP) is an example of a procyclical economic indicator. Many stock prices are also procyclical because they tend to increase when the economy is growing quickly.
What is the synonym of cyclical?
cyclic. cyclical. daily. epochal. every once in a while.
What word can u associate with economics?
WORDS RELATED TO ECONOMICS
- business.
- dealing.
- dealings.
- economics.
- exchange.
- industry.
- marketing.
- merchandising.
What is a procyclical indicator?
A procyclical economic indicator is a time series, per se or in conjunction with another time series, that moves simultaneously and in the same direction as the up and down movements related to the economy as a whole or to a part of it.
What is Acyclical variable?
Countercyclical: A variable is countercyclical if its deviations from trend are negatively correlated with the output gap. • Acyclical: A variable is acyclical if it is not procyclical nor countercycli- cal. Comovement of Imports and GDP.
Is repeated an antonym for cyclical?
What is the opposite of cyclical?
| constant | continuous |
|---|---|
| habitual | periodic |
| repeated | regular |
| usual | frequent |
| perpetual | continuing |
What is another word for marker?
What is another word for marker?
| arrow | indicator |
|---|---|
| pointer | signpost |
| hand | sign |
| waypost | mark |
| milepost | index |
What are the basic terms used in economics?
Four key economic concepts—scarcity, supply and demand, costs and benefits, and incentives—can help explain many decisions that humans make.
Why is money supply procyclical?
Because money demand tends to rise during inflationary booms, the money supply will also rise and policy will be procyclical.
What is the meaning of the word procyclical?
Meaning in policy making. Procyclical has a different meaning in the context of economic policy. In this context, it refers to any aspect of economic policy that could magnify economic or financial fluctuations. An economic policy that is believed to decrease fluctuations is called countercyclical.
Are there any other synonyms for macroeconomics?
Synonyms for macroeconomics include economics and social science. Find more similar words at wordhippo.com!
What makes an economy procyclical in the business cycle?
In business cycle theory and finance, any economic quantity that is positively correlated with the overall state of the economy is said to be procyclical. That is, any quantity that tends to increase when the overall economy is growing is classified as procyclical.
Which is the opposite of countercyclical in economics?
Procyclical is a term used in economics to describe how an economic quantity is related to economic fluctuations. It is the opposite of countercyclical. However, it has more than one meaning.