Macroeconomics

Credit Cycle

Definition

What is Credit Cycle?

The recurring expansion and contraction of borrowing, lending standards, and credit losses.

Example in practice

Easy lending fuels growth until defaults rise and banks tighten credit.

Keep learning

The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.