Psychological

Theories of the
Business Cycle

The Psychological Theory of the

business cycle was widely held in
the late 19th century. W.S Jevons
believed that cyclical economic
crises were purely psychological
phenomena. In his opinion, the
development of the cycle
depended on the alternation of
moods of melancholy, optimsm,
agiotage (speculative fever),
disillusionment, and panic.

Key Points of
Psychological Theory

Optimistic and Pessimistic

Expectation inherent in
human nature. Thus, the
problem of the capitalist
business cycle is removed
from its historical business
cycle is removed from its
historical and social
context.

Thank You and once

again Good Evening
From: Concepcion Vale
&
Marjorie Bautista