What is boom and bust cycle?

The boom and bust cycle is a process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of capitalist economies and is sometimes synonymous with the business cycle . During the boom the economy grows, jobs are plentiful and the market brings high returns to investors.

Can chronic fatigue cause a boom and bust cycle?

When people live with chronic fatigue, it's common to see a boom and bust cycle. This is when you might ‘do too much’ on one day and feel unable to do anything the next, due to your levels of fatigue.

What are the three forces causing the boom and bust cycle?

Three forces combine to cause the boom and bust cycle. They are the law of supply and demand, the availability of financial capital, and future expectations. These three forces work together to cause each phase of the cycle. In the boom phase, strong consumer demand is the leading force.

What is a boom phase?

Economists describe a boom phase as something that happens after an economic bust hits bottom. At that point, the various inefficiencies that caused the bust will have largely cycled through the economy. Signs of improvement begin to appear — often inconsistently. More specifically, this is the boost phase of the boom.