pro-cyclicality

A downward spiral

A nice/political/doublespeak way of defining something (see financial crisis) in a positive-feedback loop heading for destruction. An impending shitstorm

from:
http://business.timesonline.co.uk/tol/business/economics/article5614520.ece

It came as Jean-Claude Trichet pointed the finger at financial markets calling on them to refrain from putting pressure on banks to hold on to more capital as that was aggravating the economic downturn.

The European Central Bank President said: “It is not our position, and we will do all that we can to pass the message that we are not in agreement with that. That would augment the pro-cyclicality of the present period.”

3👍 1👎

pro-cyclical

Something that moves in the same direction as GDP.

When GDP increases, standard of living increases. Therefore, standard of living is pro-cyclical.

16👍 6👎