This book examines causes, economic implications and consumer misconceptions of the business cycle. Chapter One combines the contributions of Ludwig M. Lachmann, Frank A. Fetter and Knut Wicksell to explain the business cycle. Chapter Two reviews the history of Hong Kong’s housing market, financial system and land policies; constructs an indicator to measure the degree of exuberance in both the private housing and credit markets; and explains in detail the two major real estate cycles that have occurred over the past few decades. Chapter Three investigates the interaction between the structural change of the Chinese economy and the world’s major economies in order to explain global business cycles. Chapter Four provides a Chinese economic development outline for the next 20 years.