This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Business Cycles: The Problem and Its Setting Volume Author/Editor: Wesley Clair Mitchell Volume Publisher: NBER Volume ISBN: 0-870-14084-1 Volume URL: http://www.nber.org/books/mitc27-1 Publication Date: 1927 Chapter Title: Introductory pages to "Business Cycles: The Problem and Its Setting" Chapter Author: Wesley Clair Mitchell Chapter URL: http://www.nber.org/chapters/c0679 Chapter pages in book: (p. -23 - 0) BUSINESS CYCLES The Problem and Its Setting WESLEY C. MITCHELL NATIONAL BUREAU OF ECONOMIC RESEARCH, INC. NEW YORK Copyright, 1927, by NATIONAL BUREAU OF ECONOMIC RESEARCH, INC. All rights reserved First Printing, July, 1927 Second Printing, August, 1927 Third Printing, November, 1927 Fourth Printing, March, 1928 Fifth Printing, October, 1928 Sixth Printing, January, 1930 Seventh Printing, June, 1930 Eighth Printing, December, 1930 Ninth Printing, January, 1932 Tenth Printing, October, 1932 Eleventh Printing, October, 1933 Twelfth Printing, December, 1936 Thirteenth Printing, May, 1949 Fourteenth Printing, September, 1954 Fifteenth Printing, May, 1956 Sixteenth Printing, May, 1959 Seventeenth Printing, April, 1961 Eighteenth Printing, June, 1963 Nineteenth Printing, April, 1966 Printed in United States of America ,••—•••—— •• • • ———-• •• • •-•- • - • • 4 • _•*•_...._• .• —• • •—_;••_____ •.— • :-%c:;. • • •••-t - • • T • 31 Ho 3 (Series) history. Economic 2. cycles. Business 1. • • 1913) (Berkeley, cycles Business author's the of 1 pt. of rewriting A 1) no. cycles, ness si- in Studies Resea Economic of Bureau (National cm. 24 dlagrs. p. 489 ,odi, I'?i.i.. •a.W7a Resenrch Economic • of Bureau National York1 New print. lGth setting. its and problem the cycles, Business 1874—1948. ClaIr, Wcsley Mitchell1 __ 2,001,202 OP _______ —-3 SYSTEMS & FORMS CO.. P.O. SOX 31% ANN ARBOR. MICHIGAN DATENational10 / 30 / 72Bureau ofINTERNAL BOOKEconomic Research.FILM WORK ORDERBILLINGOP BOOK INSTRUCTIONSNOR' / NOJJ7+ CUSTOMER ) NewsettingBusiness York bycycles; Wesley-C. -the Mitchell,problem and its SUB.BY PUB. (Studiesc1927, 1966 in business cycles,no. 1) SERIES:X—REF; Mitchell,ResearchNational WesleyBureau C.,of Economic MIC.VOL. ONLYDS/P F/O UNIT S PAGES BINDS FTG. TITLE/DESC. PRICE ,05 57c/': - S. j NATIONAL BUREAU OF ECONOMIC RESEARCH STUDIES IN BUSINESS CYCLES No.1 THE PROBLEM AND ITS SETTING NATIONAL BUREAU OF ECONOMIC RESEARCH 1965 OFFICERS Frank W. Fetter, Chairman Arthur F. Burns, President Theodore 0. Yntema, Vice-President Donald B. Woodward, Treasurer William J. Carson, Secretary Geoffrey H. Moore, Director of Research Douglas H. Eldridge, Executive Director Hal B. Lary, Associate Director of Research Victor R. Fuchs, Associate Director of Research DIRECTORS AT LARGE Robert B. Anderson, New York City Wallace J. Campbell, Foundation for Cooperative Housing Erwin D. Canham, Christian Science Monitor Solomon Fabricant, New York University Marion B. Folsom, Eastman Kodak Company Crawford H. Greenewalt, E. I. du Pont de Nemours & Company Gabriel Hauge, Manufacturers Hanover Trust Company A. J. Hayes, International Association of Machinists Walter W. Heller, University of Minnesota Albert J. Hettinger, Jr., Lazard Frères and Company H. W. Laidler, League for industrial Democracy Geoffrey H. Moore, National Bureau of Economic Research Charles G. Mortimer, General Foods Corporation J. Wilson Newman, Dun & Bradstreet, Inc. George B. Roberts, Larchmont, New York Harry Scherman, Book-of-the-Month Club Boris Shishkin, American Federation of Labor and Congress ofIndustrial Organizations George Soule, South Kent, Connecticut Gus Tyler, International Ladies' Garment Workers' Union Joseph H. Willits, Langhorne, Pennsylvania Donald B. Woodward, A. W. Jones and Company DIRECTORS BY UNIVERSITY APPOINTMENT V. W. Bladen, Toronto Harold M. Groves, Wisconsin Francis M. Boddy, Minnesota Gottfried Haberler, Harvard Arthur F. Burns, Columbia Maurice W. Lee, North Carolina Lester .V. Chandler, Princeton Lloyd G. Reynolds, Yale Melvin G. de Chazeau, Cornell Paul A. Samuelson, Massachusetts Frank W. Fetter, Northwestern Institute of Technology R. A. Gordon, California Theodore W. Schultz, Chicago Willis J. Winn, Pennsylvania DIRECTORS BY APPOINTMENT OF OTHER ORGANIZATIONS Percival F. Brundage, American Institute of Certified Public Accountants Nathaniel Goldfinger, American Federation of Labor and Congress of Industrial Organizations Harold 0. Halcrow, American Farm Economic Association Murray Shields, American Management Association Willard L. Thorp, American Economic Association W. Allen Wallis, American Statistical Association Harold F. Williamson, Economic History Association Theodore 0. Yntema, Committee for Economic Development DIRECTORS EMERITI Shepard Morgan, Norfolk, Connecticut N. I. Stone, New York City Jacob Viner, Princeton, Nesv Jersey RESEARCH STAFF Moses Abramovitz Raymond W. Goldsmith Ilse Mintz Gary S. Becker Jack M Guttentag Geoffrey H. Moore Gerhard Bry Challis A. Hall, Jr. Roger F. Murray Arthur F. Burns Daniel M. Holland Ralph L. Nelson Phillip Cagan Thor Hultgren G. Warren Nutter Frank G. Dickinson F. Thomas Juster Richard T. Selden James S. Earley C. Harry Kahn Lawrence H. Seltzer Richard A. Easterlin John W. Kendrick Robert P. Shay Solomon Fabricant Irving B. Kravis George J. Stigler Albert Fishlow Hal B. Lary Norman B. Ture Milton Friedman Robert E. Lipsey Herbert B. Woolley Victor R. Fuchs Ruth P. Mack Victor Zarnowitz H. G. Georgiadis Jacob Mincer RELATION OF THE DIRECTORS TO THE WORK AND PUBLICATIONS OF THE NATIONAL BUREAU OF EcONoMIc RESEARCH 1. The object of the National Bureau of Economic Research is to ascertain and to present to the public important economic facts and their interpretation in a scientific and impartial manner. The Board of Directors is charged with the responsibility of ensuring that the work of the National Bureau is carried on in strict conformity with this object. 2. To this end the Board of Directors shall appoint one or more Directors of Research. 3. The Director or Directors of Research shall submit to the members of the Board, or to its Executive Committee, for their formal adoption, all specific proposals concerning researches to be instituted. 4. No report shall be published until the Director or Directors of Research shall have submitted to the Board a summary drawing attention to the charac- ter of the data and their utilization in the report, the nature and treatment of the problems involved, the main conclusions and such other information as in their opinion would serve to determine the suitability of the report for publica- tion in accordance with the principles of the National Bureau. 5. A copy of any manuscript proposed for publication shall also be submit- ted to each member of the Board. For each manuscript to be so submitted a special committee shall be appointed by the President, or at his designation by the Executive Director, consisting of three Directors selected as nearly as may be one from each general division of the Board. The names of the special manuscript committee shall be stated to each Director when the summary and report described in paragraph (4) are sent to him. It shall be the duty of each member of the committee to read the manuscript. If each member of the special committee signifies his approval within thirty days, the manuscript may be published. If each member of the special committee has not signified his approval within thirty days of the transmittal of the report and manuscript, the Director of Research shall then notify each member of the Board, request- ing approval or disapproval of publication, and thirty additional days shall be granted for this purpose. The manuscript shall then not be published unless at least a majority of the entire Board and a two-thirds majority of those members of the Board who shall have voted on the proposal within the time fixed for the receipt of votes on the publication proposed shall have approved. 6. No manuscript may be published, though approved by each member of the special committee, until forty-five days have elapsed from the transmittal of the summary and report. The interval is allowed for the receipt of any memorandum of dissent or reservation, together with a brief statement of his reasons, that any member may wish to express; and such memorandum of dissent or reservation shall be published with the manuscript if he so desires. Publication does not, however, imply that each member of the Board has read the manuscript, or that either members of the Board in general, or of the special committee, have passed upon its validity in every detail. 7. A copy of this resolution shall, unless otherwise determined by the Board, be printed in each copy of every National Bureau book. (Resolution adopted October 25, 1926 and revised February 6. 1933 and February 24, 1941) PREFACE Much has been learned about business cycles since 1913, when my first book on that problem was published.Economic theorists have been studying the phenomena with increasing energy and thorough- ness—Albert Aftalion and Jean Lescure in France; Mentor Bounia- tian and S. A. Pervushin in Russia; Gustav Cassel in Sweden; John Maurice Clark, William T. Foster, Waddill Catchings, Alvin H. Han- sen, and Henry L. Moore in America; R. H. Hawtrey, John A. lob- son, A. C. Pigou, and Dennis H. Robertson in England; Emil Lederer, Joseph Schumpeter and Arthur Spiethoff in Germany, to name but a few. Economic statisticians have made rapid progress in analyzing time series—witness the accomplishment of Warren M. Persons and his many co-workers here and abroad.Most important of all in promise for the future, the leading commercial nations are learning to keep more adequate records of their economic activities.Of the extraordinary business fluctuations through which the world has been passing of late, we have fuller knowledge than of any earlier cycles. For perhaps ten years my unwieldy quarto has been out of print. At least as long it has been out of date.Nor could it be brought abreast of current research by mere revision.It became plain that if I could add anything of value to the work in process it would be only by writing a new book.