They say that everything in life is cyclical. Usually, this means that sooner or later everything repeats itself in a circle, although, perhaps, at a new qualitative level. So what do we know about cycles?
Definition and brief description
In a general sense, a cycle is a repeating sequence of events. There are also more specific definitions. For example, the same term can denote a set of literary, musical or other works united by a common idea. In mathematics, a cycle is a closed sequence of adjacent edges in a graph. In chemistry, this term is also present. In this area, a cycle is a certain configuration of atoms in a molecule, in which they form a closed broken line. There is such a thing in marketing. In this discipline, they usually talk about the stages of the life cycle of a product. So this concept is used in many areas of science. And yet, most often you can hear such a phrase as a business or economic cycle. What does that mean?
Theory of cycles in economics
Everyone knows that crises happen from time to time even in the most harmonious systems. This is indeedapplies to the market economy. Back in the 18th-19th centuries, scientists noticed that crises occur at approximately equal intervals of time. They are followed by other events, which are also invariably repeated. Of course, this does not mean that only the same thing happens every time. Each next stage proceeds at a qualitatively new level, so the economy is moving forward anyway.
Realizing that there is a pattern, scientists began to look for the causes of this phenomenon. And despite the fact that they could not explain it, a huge number of factors were identified that may underlie this process.
There are four main phases of the cycle: rise (revival), peak, decline (recession) and crisis (bottom, depression). After the end of this sequence, everything starts over. Each of these stages has its own characteristics, by which they can be easily identified.
During a downturn, output declines, unemployment rises, incomes rise
Population is falling, as are savings. If this period is prolonged, then the means of production become cheaper. Ultimately, this can lead to deflation, that is, lower prices.
The lowest point of decline - depression - is characterized by the lowest level of employment, output, income. As a rule, the crisis period does not last long, and after it, a revival or recovery begins. Unemployment is falling again, incomes and output are rising, as are prices, which are affected by the increaseeffective demand. This period also affects the functioning of the banking system.
Having reached the limit level, production stops expanding and works at full capacity. This period is called boom or peak. At this moment, business activity practically does not grow, remaining at the same level. The economy may seem prosperous, but after the peak, recession sets in again. Each cycle is another stage in development.
Varieties
Depending on the duration, there are several types of economic cycles, which, as a rule, affect different areas of life. In some sources there are different names, the number of species also varies, but, as a rule, they talk about 4, and call them by the names of the scientists involved in their research:
- Kitchin. The shortest - 2-4 years. As a rule, they affect commodity cycles, unemployment, inflation, gross national product, stock levels.
- Juglar. Duration - 7-12 years. There are fluctuations in the value of GNP, investment flows. They also affect employment and inflation.
- Blacksmith. Cycle duration - 16-25 years. Usually associated with demographic and migration processes that have an impact on the economy.
- Kondratieff. Last about 40-60 years. These cycles see changes in technological progress as well as structural shifts.
Sometimes there are other varieties that affect even more global processes. However, most sources agree onsuch classification.
Reason for cyclicity
Many well-known scientists have studied the reasons why the economy goes through the same stages and events over and over again, albeit in a modified form. Interesting hypotheses appeared that were later rejected, for example, theories were proposed depending on the location of spots on the sun, which affected the crop. Over time, mankind has ceased to depend so heavily on agriculture. And then it became clear that the sun does not have such a strong influence.
Today, there are three main approaches to the question of the reasons for the cyclical nature of economic development. One of them explains this phenomenon by internal factors, the other - by external factors, and the third - by a combination of those and
others. As long as research continues, it is impossible to speak unambiguously about the reasons why cycles of economic development replace each other. It remains to accept this fact and take it into account in planning.
Cycles in programming
Not without the use of this term in their work and computer specialists. Here, a cycle is a sequence of certain operations performed repeatedly. It can be unconditional or conditional. The first variety is sometimes even called endless, because sometimes there is no way out of such a situation. In the second case, the reason for terminating the execution of the loop may be obtaining certain results or a given number of repetitions.
Use of the term in gynecology
In medicinethis term is familiar to every adult woman. I'm talking, of course, about the menstrual cycle. This is what speaks about the he alth of the reproductive system, the ability of a woman to conceive a child and successfully bear it. And any serious problems immediately affect fertility.
Why is it called a cycle? Of course, because of the repeating sequence of certain processes. There is even a division into phases of the cycle: follicular, ovulatory and luteal. At each of these stages, various important processes take place. At the first stage, follicles grow in the ovaries, one of which becomes dominant. On the second - ovulation occurs, that is, the egg comes out, ready for fertilization. All this time, the uterus is preparing for the possible reception of the embryo - its inner surface is lined with a special tissue. At the last stage, if fertilization does not occur, the cycle ends to begin again. Such is the peculiar cycle of life, which is always striving to begin.
