Purchase of goods of use can be for some term. When the economy starts testing, producers often cease to acquire the modern equipment and to build new. At such environment simply there is no sense to increase stocks of investment goods. In all cases the firm still can use cash capacities and buildings, and they are enough with interest. During the periods of means of production are usually replaced to their wear-out. However when there comes recession, firms repair the outdated equipment and put it on use. Therefore investments into means of production are sharply reduced. It is possible that the firms having excess capacities do not even seek for compensation of all capital which they at the moment consume. In that case their pure can become negative size.
Similar approach to treatment of a problem of recurrence fades into the background today, he admits initially as proceeds from the analysis only of the sphere of the address. Now recurrence is considered in connection with production and the address. In the center of the analysis dynamics of industrial production, GNP, per capita income is taken out. Thus dynamics of the prices, percent, a turn is treated only as an of all-economic changes.
Inflation is the integral line of a modern cycle. It interacts with cyclic economies and changes the cycle mechanism. This change by reduction of "sensitivity" of the prices to a to narrowing of a market demand and increase in this to increase in demand. It is explained by that the large, monopolies adapt to narrowing of demand of the population by reduction in production at a of high prices. The state helps large "to operate" in such way crisis. As a result in crises the antagonism of two tendencies in a is observed: the upward, connected with activity of the capital and the state, and bearish, generated by cyclic reduction market capacity. Therefore, the cycle combines crisis and insolation.
The business cycle gets everywhere, it is felt practically in all secluded corners of economy. The interrelation of elements of economy almost gives to nobody the chance to avoid ice embraces of a or fever of inflation. However we have to mean that the business cycle different and in different degree influences certain individuals and separate sectors of economy.