THE PHASES OF ECONOMIC CYCLE AND THE SPECIFICS OF THEIR BEHAVIOR ON THE FINANCIAL MARKET

Author:

Povzhyk Kateryna, Chernihiv National University of Technology (95 Shevchenka Str., 14035 Chernihiv, Ukraine)

Language: ukrainian

Annotation:

The prerequisites for the growing influence of the phases of the economic cycle on the financial market are describes in the article. The concept of financial cycle was examined. The basic approach to its treatment are determinated. There are: in terms of the credit cycle, in terms of complex financial variables, in terms of the credit cycle and the cycle of asset prices. The approximate duration of the financial cycle was determined. The peculiarities of its course for each phase: recovery and growth, financial crisis and recession were indentifined. The causes speculative component during recovery are designated. The types are borrowed, creating conditions for the accumulation of private debt and bring the economy to the financial crisis are determinated. The process of establishing a real asset prices during the recession, the effects last identified differences in the financial markets and the real sector are described. The relationship between stock market fluctuations and changes in the overall frequency of cyclic phases are examined . The relationship and interaction between the bond market, stock and commodity market was described.

Key words:

economic cycle, the financial cycle, phase of recovery, crisis, recession, stock market, bonds, stocks

References:

1. Vasilyeva, T. A. (2013). Finansovi tsykly i finansovi dysbalansy v ekonomitsi [Financial cycles and financial imbalances in economy]. Ekonomika i rehion – Economy and region, no. 3 (40), pp. 124–130 (in English).

2. Halchynskyi, A.S. (2009). Kryza i tsykly svitovoho rozvytku [The crisis and the global development cycles]. Kyiv: ADEF-Ukraine (in Ukrainian).

3. Holomb, V. (2009). Mistse pokaznykiv fondovoho rynku v systemi tsyklichnykh indykatoriv [Place the stock market indices in the system of cyclical indicators]. Ryzyk-menedzhment – Risk Management, no 3-4, pp. 95–100 (in Ukrainian).

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