Domestic and global financial cycles move at different speeds but typically come together to “turbocharge” crises, research published by the Bank for International Settlements finds.

Iñaki Aldasoro, Stefan Avdjiev, Claudio Borio and Piti Disyatat study the dynamics of the domestic and global cycles. They find the global cycle tends to follow the duration of business cycles (typically two to eight years), while the domestic cycle tends to operate over a much longer horizon, sometimes twice as