A “Samuelson-style†global cyclical slowdown?
A Samuelson -style cycle is one linked to investment and durable goods purchases, caused by inertia in the response of investment to changes in production and of consumption to production. A cyclical downturn then arises when needs for investment and durable goods purchases are saturated. This type of cycle is now appearing in the United States, the euro zone and China: such economic cycle s of the past , probably linked to the investment cycle , now loo k set to return globally .