• The differences and similarities between the business cycle and the financial cycle under a contemporary fiat money system.
  • Explain why both cycles can be regarded as credit cycles.
  • Indicate the different reasons for the cyclical up- and downswings in these two cycles, and why specifically the latter cycle poses a threat to the banking system and the macroeconomic stability of the economy at large.
  • Mention how Fisher's debt-deflation effects can aggravate the downturn of the credit/financial cycle. (20/100)