The Research on the cyclical behavior of prices (1963-1995 Turkey)

In countries, where free enterprise system exists; by researches on economic life it has been implied that the capacity of economic activity hasn't increased continuously with protecting the same level, in reverse it has fluctuated recurrently. Altough it is difficult to determine the certain dates of these business cycles which affect not only few activities but also the whole activities of economic life, the length of business cycles is considered important to explain the conditions of country economy. Along the cycle, production, prices, money stock, short term interest rates, the velocity of money, consumer and producer durables and firm profits move all together. Explaining the typical co-movements of variables is the main provision of explaining business cycles. Here, there is debate between macroeconomic schools about the movement of the business cycle with the stylized facts which are the explanation of typical behavior of macroeconomic variables such as pices level, nominal interest rates and real wage rates broadly in the expansion and recession periods of cycle. A good explaination about business cycles has to explain the cause of co-movement of total variables which characterize most of the economic expansion and recession in the real world. In the first chapter of the study, the types of economic fluctuations, definition, levels, types, causes of business cycle and the general level of prices are discussed; in the second chapter, the business cycles theories in the Classical and Keynesian thoughts are discussed; in the third chapter new business cycles theories are discussed; in the fourth chapter, method about analysis of business cycles, the research on literature about the cyclical behavior of prices and the result of research about the cyclical behavior of prices in Turkey are discussed.