pró-ciclicalidade
English translation: procyclicality
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| 10:17 Mar 18, 2017 |
| Portuguese to English translations [PRO] Bus/Financial - Government / Politics | |||||||
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|  Selected response from: Gilmar Fernandes United States Local time: 20:31 | ||||||
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| 4 +3 | procyclicality |
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Answers
21 mins confidence: 
peer agreement (net): +3
peer agreement (net): +3procyclicality Explanation: https://en.wikipedia.org/wiki/Procyclical_and_countercyclica... Procyclical and countercyclical are terms used to describe how an economic quantity is related to economic fluctuations. Their meanings may vary with regard to business cycle theory and economic policy making. The terms are often used loosely to describe a government's approach to spending and taxation. A 'procyclical fiscal policy' can be summarised simply as governments choosing to increase public spending and reduce taxes during an economic boom, but reduce spending and increase taxes during a recession. A 'countercyclical' fiscal policy refers to the opposite approach: reducing spending and raising taxes during a boom period, and increasing spending/cutting taxes during a recession. Thus the financial regulations of the Basel II Accord have been criticized for their possible **procyclicality.** The accord requires banks to increase their capital ratios when they face greater risks. Unfortunately, this may require them to lend less during a recession or a credit crunch, which could aggravate the downturn. |
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