ABSTRACT
The theory of the business cycle presented below is in many respects similar to that given in my Essays in the Theory of Economic fluctuations and my earlier writings. The justification for this new version is that: (1) I now tackle the problem from a new angle and introduce new factors into the explanation of the business cycle; (2) with this new treatment it is possible to drop some of my simplifying assumptions and to achieve some new results; (3) I do not now consider only the problem of the “pure” business cycle, but deal in the last essay with the trend superimposed on the cycle.
