2015-02-06

How will Old Oak Common fit into the 'Business Cycle"?


Link to 'The Geography of transport systems'

"Business cycles are a well-understood concept commonly linked with technological innovations, which are often triggering a phase of investment and new opportunities in terms of market and employment. The outcome is economic expansion and as the technology matures and markets become saturated, expansion slows down.

"A phase of recession is then a likely possibility as a correction is required to clear the excess investment or capacity that irremediably occur in the later stages of an economic cycle. The bottom line is that recessions are a normal condition to a market economy as they are regulating any excess, bankrupting the weakest players or those with the highest leverage.

"However, one of the mandates of central banking is to fight a process (business cycles) that occurs 'naturally'."

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