Abstract: In this article, by reviewing some previous research, a clear definition of financial cycle is put forward; the development of the financial cycle research, both theoretical and emespirical, is introduced; and also, the future of the study is discussed. Based on the elaboration on the theoretical research of financial cycle, the article thoroughly analyzes the drivers and forming mechanisms of the financial cycle fluctuations, systematically explores the correlation mechanism between the financial cycle and the economic cycle, paying close attention to the transnational spillover effects and the international cooperation mechanism of the financial cycle. There are also discussions regarding gradually building and improving the macroeconomic regulatory framework that takes into account both financial and economic stability, and constructing financial security early warning system based on financial cycle.

Keywords: Financial Cycle; Economic Cycle; Macroeconomic Regulation