tag:blogger.com,1999:blog-1138037719967138620.post3051143379881977875..comments2020-08-11T10:31:20.245-04:00Comments on Comments on Credit: Inventories ExplodeTim Delaneyhttp://www.blogger.com/profile/10197685046398173361noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1138037719967138620.post-52688470165914439162009-03-19T06:17:00.000-04:002009-03-19T06:17:00.000-04:00I recall hearing somewhere that economies have two...I recall hearing somewhere that economies have two cycles: a business cycle and an inventory cycle. The business cycle is the well known expansion/contraction scenario that has a length of say 10 years. We're in a recession right now. The inventory cycle has a shorter length but results in changes to economic demand as companies decide to either build up their inventory (increasing aggregate demand) or running down their inventory (decreasing aggregate demand). I'm assuming that we are now in the running down stage. One companies see brighter prospects they should start building their inventories in anticipation of higher sales in the future. Anybody have any thoughts on this?Anonymousnoreply@blogger.com