The National Bureau of Economic Research (NBER) defines arecessionas a significant decline in activity spread across the economy, lasting more than a few months, visible in industrial production, employment, real income, and wholesale retail trade. It is caused by a chain of events in the econo...
ut there's another way of looking at the trade data. Over the past two years, the figures on imports and exports seem not to signal a double-dip recession – a renewed decline in the broad level of economic activity in the United States – but an economic expansion. t of the United ...
The bottom line, however, is that recessions a a fact of life. As highly unpleasant as they may be, they are inevitable occurrences in any dynamic economy. And if you're prepared for the next recession, there will be plenty of opportunities when that downturn ends. Thus, the more you kn...
The last time there was a global recession was in the late 2000s. The scale and timing of that great recession as it's now known varied from country to country, but on a global level it was the worst financial crisis since the great depression. Now a decade on some people are worried...
This paper draws its title from a paper written over 35 years ago by Geoffrey H. Moore (1967). Why the need for a reprise? First, there would appear currently to be somewhat diverging views as to what properly constitutes a recession. Second, largely as a result of this, in many countr...
When investors are concerned the economy might be slowing down, they often sell their shares in public companies, and instead loan their money to governments by buying bonds. That's because bonds are usually seen as a less risky investment. So those are the warning signs of a recession. But...
fearful.” During a recession, it is essential to keep a level head and avoid acting in panic, which can lead to costly mistakes. History has shown that equity markets do eventually recover following market downturns. Remember March 2020 when the economy came to halt due to the Covid ...
Suppose the economy is experiencing a recession and high unemployment. What would be the interpretation of how an expansionary monetary policy would address this problem? (a) Describe the three economic indicators - Inflation, unemployment, and GDP. (b) What causes these i...
revenues, such as taxes. For example, if a government takes in $10 billion in revenue in a particular year and its expenditures for the same year are $12 billion, it is running a deficit of $2 billion. That deficit, added to those from previous years, constitutes the country'snational ...
The old adage “what goes up, must come down” aptly describes a dynamic economy that has historically followed a cycle of growth and decline. The down period in that cycle constitutes a recession, which affects investment returns across various asset classes. For this reason, investors may ...