This study aims to investigate the impact of leverage on business cycle in the U.S.A. using the vector autoregressive model and more broadly to examine its spillover effects on 33 countries, mainly including OECD countries, using the global vector autoregressive model. The main findings indicate that the leverage growth has negative impact on business cycle in the U.S.A. and the negative impact spreads into most OECD countries. The evidence suggests that the leverage growth shocks play an important role as the driving force behind business cycle.