They say that everything in life is cyclical. Usually, this means that sooner or later everything repeats in a circle, although, perhaps, at a new qualitative level. So what do we know about loops?
Definition and brief description
In a general sense, a cycle is a repeating sequence of events. There are more specific definitions. For example, the same term can mean a combination of literary, musical or other works united by a common idea. In mathematics, cycles are a closed sequence of adjacent edges of a graph. In chemistry, this term is also present. In this area, a cycle is a specific configuration of atoms in a molecule in which they form a closed broken line. There is such a concept in marketing. In this discipline, they usually talk about the stages of the life cycle of a particular product. So this concept is used in many fields of science. And yet, most often you can hear such a phrase as a business or economic cycle. What does this mean?
Cycle theory in economics
Everyone knows that from time to time, even in the most harmonious systems, crises occur. The same applies to a 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 that also invariably recur. Of course, this does not mean that each time only the same thing happens. Each subsequent stage proceeds at a qualitatively new level, so that the economy in any case moves forward.
Realizing that there is a certain pattern, scientists began to look for the causes of this phenomenon. And despite the fact that they could not explain this, a huge number of factors were identified that, perhaps, are the basis of this process.
There are four main phases of the cycle: rise (recovery), peak, decline (recession) and crisis (bottom, depression). After the end of this sequence, it all starts over. Each of these stages has its own characteristic features, by which they can be easily determined.
During a recession, output decreases, unemployment rises, income
the population is falling, as are the volumes of accumulations. If this period is delayed, then the means of production are cheapened. Ultimately, this can lead to deflation, that is, lower prices.
The bottom point of the recession - depression - is characterized by the lowest level of employment, output, income. As a rule, the crisis period does not last long, and after it begins a recovery or recovery. Unemployment is falling again, income and production are rising, as are prices, which are affected by rising effective demand. This period also affects the functioning of the banking system.
Having reached the ultimate level, production ceases to expand and works at full strength. Such a period is called a boom or peak. At this moment, business activity is practically not growing, 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 they are called by the names of the scientists who were involved in their research:
- Kitchina. The shortest - 2-4 years. As a rule, they affect commodity cycles, unemployment, inflation, gross national product, and stocks.
- Zhuglara. Duration - 7-12 years. There are fluctuations in GNP and investment flows. Also affect employment and inflation.
- Blacksmith. The duration of the cycle is 16-25 years. Usually associated with demographic and migration processes that have an impact on the economy.
- Kondratiev. They last about 40-60 years. In these cycles, changes in technological progress are observed, as well as structural changes.
Other varieties are sometimes distinguished, affecting even more global processes. However, most sources agree precisely on this classification.
Reasons for Cycling
Many well-known scientists have been studying the reasons why the economy passes through the same stages and events over and over again, albeit in an altered form. Interesting hypotheses appeared, which were later rejected, for example, theories were proposed of the dependence on the location of spots in the sun, which affected the crop. Over time, humanity has ceased to depend so much 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 issue of the causes of cyclical economic development. One of them explains this phenomenon by internal factors, the other by external factors, and the third by the combination of those and
others. As long as research continues, it is impossible to unequivocally talk about the reasons why the cycles of economic development are replacing each other. It remains to accept this fact and take it into account in planning.
Programming Cycles
Computer specialists were also able to use this term in their work. Here, a cycle is called 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 this situation. In the second case, the reason for stopping the execution of the cycle may be to obtain certain results or a given number of repetitions.
Use of the term in gynecology
In medicine, this term is familiar to every adult woman. This, of course, is about the menstrual cycle. This is what speaks of the health of the reproductive system, the woman’s ability to conceive a child and successfully bear it. And any serious problems instantly affect fertility.
Why is this called a cycle? Of course, due to 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. On the first - follicles grow in the ovaries, one of which becomes dominant. On the second - ovulation occurs, that is, an egg comes out, ready for fertilization. All this time, the uterus is preparing for a possible reception of the embryo - its inner surface is lined with 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.