Economic variables like GDP growth, employment, interest rates and consumption show signs of cyclical behavior. Many variables display multiple cycles, with lengths ranging in between 5 to even up to 100 years. We argue that multiple cycles can be associated with long-run stability of the economic system, provided that the cycle lengths are such that interference is rare or absent. For a large sample of important variables, including key variables for the US, UK and the Netherlands, we document that this is indeed the case.

Additional Metadata
Keywords Fibonacci, business cycles, economic stability, long waves
JEL Macroeconomic Analyses of Economic Development (jel O11)
Persistent URL hdl.handle.net/1765/7666
Series Econometric Institute Research Papers
Journal Report / Econometric Institute, Erasmus University Rotterdam
Citation
de Groot, E.A, & Franses, Ph.H.B.F. (2006). Stability through cycles (No. EI 2006-07). Report / Econometric Institute, Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/7666