Episode

Definition

The concept Episode refers to a period of time during which an economy is exposed to continuous a-cyclical forces that alter the nature of macroeconomic trends. This results from a significant change in the economy's workings.

Context

Whereas cyclical forces create fluctuations about an existing economic trend, a-cyclical forces alter the nature of the trend.

An Episode occurs because of prolonged a-cyclical influences on an economy that result from active intervention, systemic effects or uncontrollable events. For example, Zimbabwe is suffering an Episode of Hyper-Inflation because of Robert Mugabe's policies. The Persian Gulf Nations enjoyed an Episode of high growth due to the commercialization of their oil reserves.  The world has just ended an extended Episode of low interest rates and cheap money. 

An Episode stands in contrast to cyclical workings of an economy. For example, economies with a large tourism sector may fluctuate seasonally. Central banks oversee fluctuations in interest rates to maintain a stable macro economy. Businesses purchase machinery and seek a return on investment before investing further.  These forces do not create an episode.

An Episode may not be readily apparent.  It is only after a number of typical business cycles have passed and performance seems to differ from expected results that an Episode can be recognized.

The Top 15 Agenda contends that Israel requires an Episode of significant growth in order to meet the benchmark of the Top 15 most developed nations in the world.

Episode
קראו את הגרסה בעברית
Tags

Socioeconomic Growth, Regional Development, Leapfrogging, Israel 15, Start-Up Nation

2006-04-01

Concept

Socioeconomic

National Leapfrog

An Episode occurs because of prolonged a-cyclical influences on an economy that result from active intervention, systemic effects or uncontrollable events.

Related Content

First Quarterly Report - mapping the Jewish Peoplehood field in Israel

First Quarterly Report - mapping the Jewish Peoplehood field in Israel

We are very proud to present the first quarterly report of the Jewish People Field Mapping System. The report presents data for the first quarter of 2022 (January-March) and further completion of April information. This is the first report produced on the basis of the new mapping system.

We are Hiring!

We are Hiring!

Call for Applicants for Analyst Position at the Reut Institute
DEADLINE FOR SUBMISSION: SUNDAY, MAY 1ST BY 09:30 AM
About

The Red Green Alliance is Coming to America

The Red Green Alliance is Coming to America

The Impact of the Islamo-Leftist Coalition on US Jewry & Foreign Policy, & Israel's National Security