The aim of this paper is to show that the 'oscillating universe' is a
viable alternative to inflation. We recall that this model provides a
natural solution to the flatness or entropy and to the horizon problem
of standard cosmology. We study the evolution of density perturbation
s and determine the power spectrum in a closed universe. The results l
ead to constraints on how a previous cycle might have looked. We argue
that most of the radiation entropy of the present universe may have o
riginated from gravitational entropy produced in a previous cycle. We
show that measurements of the power Spectrum on very large scales coul
d, in principle, decide whether our universe is closed, hat or open.