PRESENTATION ON

TRADE CYCLE
PRESENTED BY :
RUPENDRA ROHAT
 SYNOPSIS

 INTRODUCTION
 DEFINITIONS
 CHARACTERISTICS OR NATURE
 CLASSIFICATIONS OF TRADE CYCLES
 PHASES OF TRADE CYCLES
 CAUSES OF TRADE CYCLES
 MEASURES TO CONTROL TRADE
CYCLES
 CONCLUSION
 INTRODUCTION
 Trade-cycle means the cyclic fluctuations
which takes place frequently and regularly in
an economy. Trade-cycle means the economic
incident or incidents which occurs regularly at
a certain time and causes alternative changes in
prices and the situation of employment.
 DEFINITIONS
 According to Mitchell “ Business cycles are
series of fluctuations in the economic activities
of organized communities.”
 According to Keynes “ A trade cycle is
composed of periods of good trade
characterized by rising prices and low
unemployment percentages altering with
period of bad trade characterized by falling
prices and higher unemployment.”
CHARACTERISTICS OR NATURE
 Periodicity :- The sequences of trade cycles is
definite , one incident is followed by another
incident.
 Synchronism :- The incidents in trade cycles
recur in fairly similar pattern.
CLASSIFICATIONS OF TRADE CYCLE
 According to Prof. James Arthur classified
business cycles into three parts as follows :
a. Major and Minor Trade Cycles
b. Building Cycles
c. Long Waves
 PHASES OF TRADE CYCLES
 Phases of Depression
 Phases of Revival or Recovery
 Phases of Prosperity or Boom
 Phases of Recession or Contraction
CAUSES OF TRADE CYCLES
 Expansion of Loans and Contraction of Loans
by Banks
 Mala Adjustments between Savings and
Investments
 Lack of Adjustments between Demand and
Supply
 Lack of Adjustments between Income and
Expenses of Consumers
 Feelings of Entrepreneur
 CONTD.
 Developments of New Technologies of
Production
 Lack of Favourable Ratio
 Psychology of Consumers
 Seasonal Fluctuations
 MEASURES TO CONTROL TRADE
CYCLES
 Preventive Measures
 Formal Measures
 CONCLUSION
 There are many causes of trade cycles and
these causes cannot be fully checked and
controlled , yet they can be minimized if
proper and adequate measures are adopted by
Government. Full co-operation of Government
machinery should co-operate in this direction
and the business society should make their best
efforts.
THANK YOU