The partisan business cycle suggests that cycles result from the successive elections of administrations with different policy regimes. Regime A adopts expansionary policies, resulting in growth and inflation, but is voted out of office when inflation becomes unacceptably high. The replacement, Regime B, adopts contractionary policies reducing inflation and growth, and the downwards swing of the cycle. It is voted out of office when unemployment is too high, being replaced by Party A.
The partisan business cycle suggests that cycles result from the successive elections of administrations with different policy regimes Regime A adopts expansionary policies resulting in growth and inflation but is voted out of office when inflation becomes unacceptably high The replacement Regime B adopts contractionary policies reducing inflation and growth and the downwards swing of the cycle It is voted out of office when unemployment is too high being replaced by Party A