9 Questions
What are the two cycles of debt swing discussed by Ray Dalio?
Short-term (5 to 8 years) and long-term (75 to 100 years)
When does the economic contraction and deleveraging typically occur?
After a negative catalyst triggers the shock
Why are short-term debt cycles more discussed than long-term debt cycles?
They are easier to track and more immediate
What triggers an economic expansion, according to the text?
Increasing system's debt level
What is the duration of a short-term debt/credit cycle?
5-10 years
When does the system's debt level keep increasing during an economic expansion?
Until the economy becomes susceptible to an economic shock
What is the duration of a long-term debt cycle according to Ray Dalio?
75-100 years
What triggers economic contraction and deleveraging?
A negative catalyst
Why are short-term debt cycles more immediate and easier to track?
They last for a shorter duration
Test your knowledge of short and long-term debt cycles with this insightful quiz. Explore key concepts from Ray Dalio's book "How the Economic Machine Works" and deepen your understanding of economic cycles.
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