Kaldor’s Trade Cycle Model: Understanding Business Fluctuations and Fiscal Policy
Kaldor’s trade cycle model is a significant contribution to the understanding of business fluctuations in macroeconomics. Developed by Nicholas Kaldor, this model attempts to explain the cyclical nature of economic activity, shedding light on how economies move through different phases—expansion, peak, contraction, and recovery. Unlike other models of economic cycles that focus primarily on exogenous … Read more