Importance The research focuses on factors that play an important role in forming the environment where businesses operate in and production processes take place. The article analyzes theoretical, informative, substantive and other aspects of financial acceleration, which are relevant in terms of management. Objectives The research shows the results of analysis of the economic instability factors. Results I attempt to consider the role of cause-and-effect relations within the development of crisis phenomena. Initially I analyzed the BGG model in terms of conditions and internal nature of natural fluctuation in business activities. Then I reviewed the mechanism for expanding the fluctuation amplitude and extension of specific shocks in economy. The research also evaluates initial factors of transformation. Conclusions and Relevance The subjective factor has not been studied and explained yet as part of the BGG model, being nonadjustable. Acceleration instances demonstrate the effect of double asymmetry, which cannot be explained, since source subjective, social and systems factors are not taken into consideration. There are no sufficient reasons to confirm or overturn the theory stating that the financial accelerator is a powerful and cyclical mechanism embedded into the market economy. However, the model substance does not unveil underlying factors of acceleration, with assumptions failing to qualify it as adequate.
Keywords: factor, BGG model, crisis, financial accelerator, general equilibrium theory
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