This paper proposes a conceptualization of business cycle fluctuations in which the role of financial conditions and nonlinear dynamics are explicitly incorporated. We highlight the role of investment demand in driving economic fluctuations, consider its endogenous dynamic interactions with...

Why study business cycles? -- Describing business cycles -- Early business cycle theories -- Keynes' and Keynesian theory -- The monetarist model -- The rational expectations model -- Real business cycle models -- New Keynesian models -- Models of credit and financial instability --...