Who is responsible for dating business cycles
These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).
Business cycles are usually measured by considering the growth rate of real gross domestic product.
Timely identification of economic contraction and its severity allows policymakers to intervene, and thereby reduce its amplitude and duration.
In a small project, little organization structure is needed.
In addition, firms can re-evaluate projections of sales and profits, and the consumers their purchasing and investment plans, based on information on transitions to new business cycle phases. Whether a BCDC should be part of the government, the RBI or an independent research organization with high credibility is debatable.
The Reserve Bank of India (RBI) set up a working group of economic indicators in 2002 and a technical advisory group (TAG) on the development of leading indicators for the Indian economy in 2006, both under the chairmanship of R. Notably, the members of all the aforementioned BCDCs are independent scholars.
As a result, the decision regarding the dating of business cycles is not political.
The length of a business cycle is the period of time containing a single boom and contraction in sequence.