Economists today often use a macro view of economics in which they view economic problems through the lenses of both business cycles and national budgets. They believe that economies are not only affected by short-term market fluctuations, but also by long-term external forces such as the global economy. This means that while the market can affect the economy to the degree that it can cause a recession, it cannot be considered the sole determining factor.
The macro view of economics has been around for many years, ever since the economists Irving Fisher and John Maynard Keynes presented the theory of demand. The theory of demand suggests that the economy will follow a cycle, which goes from good times to bad, and then back again, until a specific equilibrium is reached. It was the equilibrium they were referring to, because it is the point at which the economy has reached its highest level of efficiency. Once that equilibrium has been reached, there will then be a period of recessions before it reaches a higher level of efficiency and so on and so forth.
The macro view of economics is a great way to get an overall picture of the current state of the economy. However, there are some very specific issues that come up with this theory. For example, since the world's economies are interdependent, there can be fluctuations in one country's GDP, but not another's, which mean that the national GDP of the United States will be affected by the economy in Japan, for example, but not by the economy in Brazil.
There are also problems with the fact that the economy is always reacting to the actions of others, and not the actions of the economic system itself. When there is an economic crisis, there are usually plenty of people who want to save their own bacon, so that they can prevent the same thing from happening to them. But when they fail to act, the entire economic system is affected, and the same problem will repeat again. The end result is always recession, which is the result when the economic system fails to respond quickly enough.
The macro view of economics also tends to make it seem that there is a single cause of the entire economic cycle. This is true, because it makes it easier to think about solutions. However, the cause is not one singular and it is not a single reason for the entire economic cycle. It is rather a combination of several things, all of which interact together, and influence one another, causing the economic cycle to take place. Because the macro view of economics does not have a single cause, it tends to assume that it is able to give the answers to the questions posed in an easy and quick fashion.
It is important to remember that no matter what kind of macro view you are using to look at the current state of the economy, the reason behind the whole cycle of the economy is not going to be found in any single book or guide, and certainly not in one single economics today. The cause must be examined within a larger context.