ECONOMISTS are familiar with the concept of a business cycle and some even with the idea of a political business cycle. The term business cycle refers to the ups and downs of economic activity as output, investment, employment and other such economic indicators rise and fall over time. Economists have been able to identify short-term, medium-term and long-term cycles. A political business cycle is a concept used to explain politically motivated increase or decrease in government spending associated with a democracy’s electoral cycle. Governments tend to increase public spending before elections and try to improve. . .