Leonardo Matchar
Economic booms and busts are inherent features of modern market economies, characterized by periods of rapid expansion followed by sharp contractions. This paper provides a comprehensive macroscopic examination of the dynamics, causes, and consequences of economic booms and busts. Drawing on a wide array of theoretical frameworks and empirical evidence, we explore the underlying drivers of these fluctuations, including shifts in consumer sentiment, monetary policy, technological advancements, and external shocks. Furthermore, we investigate the role of government intervention, regulatory policies, and institutional frameworks in moderating the amplitude and duration of these cycles.