Abstract:

This paper examines the impact of economic business cycles focusing on emerging and developed economies, specific issues, mostly regarding France and Romanian cases. In extension of the theoretical constructions on business cycles, the analysis of the phenomenon is completed by empirical tests designed to classify, quantify and explain the various stages of the cycle.

We will try through applying HP filter to extract the cyclical component for France. By doing this we can determine peak, through and the turning points of economical activity. In this paper we will also focus on three macroeconomic variables: growth in GDP, employment and industrial production.

The recent crises has revealed two important moments: one of truth, meaning that many economies are still fragile and unprepared for the huge and deceiving role of an economic crisis. Second, a moment of concession, where we try to put all pieces of a huge broken puzzle together, arranging and rearranging the fundamental institution, in order to find new solutions and our path.