Theories of economic cycles through Say's law

Abstract

This article is a review of the leading thinkers of economic cience and to how these relate economic cycles to the Say market laws. This law in its most simplified or most distorted form tells us that every offer creates its own demand. Around this premise, all classical economists believe that crises are exogenous factors, since in an endogenous way there is always equality between supply and demand. Every time we face an economic crisis, there is a change of direction of the short term economic cycle.  This causes the need to restore the path for development, for which different macroeconomic policies are adopted. These policies can encourage demand (consumption) or supply (production), that is why the Say´s law becomes relevant in times of economic fluctuations.