Experience has dispelled such beliefs and has shown that the business cycle and the financial cycle are not necessarily synchronized; long periods of disconnect between the two cycles can  BIS central bankers’ speeches  1  materialize. In particular, the financial cycle tends to have larger amplitude and lower frequency than the normal business cycle.
“Does the Federal Reserve Care about the Rest of the World? ” Journal of Economic Perspectives, vol. 27 (Fall), pp. 87–104. Federal Open Market Committee (2014). Statement on Longer-Run Goals and Monetary Policy Strategy (PDF). Washington: Board of Governors of the Federal Reserve System, January 28. Fischer, Stanley (2014). “Financial Sector Reform: How Far Are We?