The Economy is Energy Transformed

A core framework for understanding economic cycles is based on two axes: economic growth and price changes (inflation or deflation). This structure divides the economy into four quadrants:

• Deflationary Growth: Growth with falling prices.
• Inflationary Growth: Growth with rising prices.
• Deflationary Bust: Contraction with falling prices.
• Inflationary Bust: Contraction with rising prices.