Economic fluctuations are generally caused by variations in the money supply however they can also be caused by various factors such as political , social and economic factors . These fluctuations are indicators that allow analysts to have reference points of crisis or economic progress , therefore, they must be taken into account if you want to know the causes of said phenomenon and coordinate efforts to avoid or pursue them in positive cases. Causes and consequences of fluctuations The main causes and consequences of fluctuations are listed below: Causes Poor implementation of economic policies by the State . Optimum and prolonged periods of economic growth .
Proper management of resources Bosnia and Herzegovina Phone Number by the state Natural phenomena which can negatively affect the economy. Social catastrophes such as wars, which unbalance the economy and have a significant impact, generating negative fluctuations. Impact negative Mistrust on the part of investors . Poverty in society. Discouragement on the part of the inhabitants of the territory. Loss of purchasing power Dissatisfaction of the basic needs of the inhabitants Decrease in the general production of goods and services. Slowdown in the economy. positive Increase in purchasing power . Optimism on the part of the population. Increased production of goods and services.
Increased quality of life Increased economic growth Types of fluctuations The main types of fluctuations are listed below: Cyclical fluctuation: refers to that type of oscillation that occurs in a certain time interval, and that corresponds to a contraction or expansion and has repetitive stages. Sporadic fluctuation: refers to that type of oscillation derived from irregular situations such as natural disasters, poor implementation of economic policies, external phenomena that disrupt the market order, etc. Seasonal fluctuation : refers to that type of unpredictable oscillation that is subject to the long period of time, generating various changes in society and the economy.