The term procyclity not part of the dictionary of the Royal Spanish Academy (RAE ). Neither procyclicality , another word that is often used in our language in the field of economy and the finance . Both concepts come from English procyclicality.
As published in semicolon , the bulletin developed by the Spanish translators of the entities of the European Union (EU ) and by other translation professionals, it is preferable to resort to the notion of procyclicality. Anyway, you just need to look in Google to discover that many media choose to use procyclicality.
Procyclicality and procyclicality, in short, refer to what happens when the credit flows and capitals he multiply in a favorable context and later disappear If the situation changes. This phenomenon causes spirals that are optimistic or pessimistic in an excessive way, generating exaggerated consequences.
It is important to keep in mind that cycles They are normal in the economic field. Procyclity appears when the oscillations are very large due to the magnitude of the peaks in the boom and depressions at the opposite time.
Specialists indicate that procyclicality occurs when it goes from waste to excessive austerity and vice versa . This tendency usually occurs in those sectors of the economy in which the volatility of prices It is usual.
The logic of procyclity or procyclicality is easy to understand by analyzing the fiscal policy from many countries. It is usual that, during periods of economic prosperity, governments increase public spending a lot. Then, in times of recession and crisis, that same expense is reduced as much as possible. For experts, this causes the growth stages to be very marked, as well as the periods of economic contraction.