Presents the empirical data of business cycles and the theories that economists have developed to explain and prevent them, and considers case studies of recessions and depressions in the United States and internationally.

This paper investigates to what extent the declines of the U.S. real GDP are permanent during the Great Recession. Our trend-cycle decomposition indicates that the Great Recession is associated with a substantial permanent loss in the real GDP manifested in decelerated mean growth rate and...

Sudden stops in capital inflows were a main characteristic of the emerging market crisis during the 1990's. Concerns about them have recurred in the light of recently increased global stability risk and the quantitative easing that led to substantial capital inflows in emerging economies. We add...