Economic Cycle
General economic conditions can be described in a repeating cycle.
In phase "expansion" of business activities develop, production and demand (demand) increases, increased employment, improved welfare, increased sales levels, the buildings constructed.
In this condition normally entrepreneurs and communities will borrow money (credit) to expand its business, which caused interest rates to rise.
Until the peak demand will exceed the capacity of goods while the money supply circulating in the community too much and jumped hargapun, a condition called "inflation".
Then there was phase "recession", where purchasing power is reduced, demand decreases, tesendat economic activity, employment decreases. Until eventually exceed demand and supply prices to be cheap, this condition is called "deflation".
With the low prices of the building began to pick up again and returned to the first phase.
The point is if there is inflation means prices will be high and the currency exchange rate low.
Hence the government of a country will try to curb inflation by controlling the supply of money in the community through interest rate policy centralnya bank.
Political & economic condition is very influential Americans to world economic conditions, because it was news and U.S. economic data is often used as a reference by investors against the movement of the world's major currencies.
Keep in mind that economics starts up (unbalance)", when the resources of a particular geographical make compliance with the area / people with the necessary resources. Ofimbalance towards equilibrium (balance) in fulfillment, a cycle that continues to move due to the process towards balance. Economic cycles caused temporary vacancies for compliance
equilibrium that makes the cycle spinning. Human beings with reason and faith (brain & will) attempt to meet the balance and then conducted a systematic fulfillment of balance, born of a science economy. However, the economics likewise created by human intervention that is not pure, which cause of excessive equilibrium and the desire to escape from the cycle economic.
The crisis today is the result of the economic cycle, when the economic system considered as a large ball with a fixed value of resources, economic values (economic value) is fixed. However, in real systems applied in the world, the drive wheel cycle based unbalance. It stopped. Large countries that seek out the reluctant cycle is at temporary vacancies to move the wheels of their economies. In the cycle there is always a resources rotation.
However, in practice countries are in the cycle (resourceful state) does not want to be in the opposite position. Desire and intention is that the wheels of the cycle disregarded and denied. Countries who hold certain powers "want" out of cycle, Countries with free-market deregulation will accumulate desire and a global prosperity was only a dream.
