RECESSION

In economics , recession is a general slowdown in the economic activity over a long period of time or a business cycle.

ATTRIBUTES
A recession has many attributes that can occur simultaneously and includes decline in coincident measure of activity such as employment ,investment and corporate profits. A severe recession is referred to as an economic depression( for eg:great depression).

CAUSES
Inadequate aggregate demand in the economy. WAR Britains decision to return to gold standard(one of the cause for great depression:1929-1939) Overproduction

HISTORY
There is no commonly accepted definition of a global recession , IMF regards periods when global growth is less than 3% to be global recession. By this measure, four periods since 1985 qualify :19901993, 1998, 20012002 and 20082009.

CURRENT SCENARIO
The financial crisis has been linked to reckless and unsustainable lending practices resulting from the deregulation and securitization of real estate mortgages in the united states . The emergence of sub prime loans in 2007 began the crisis and the fall of Lehman brothers on September 15 2008.

EFFECTS
Bankruptcies Credit crunches Deflation Foreclosures Unemployment

MEASURES TAKEN BY GOVERNMENT

Strategies favoured for moving an economy out of a recession vary depending on which economic school the policymakers follow. Monetarists would favour the expansionary monetary policy, while Keynesian economists may advocate increased government spending to spark economic growth . Supply side economists may suggest tax cuts to promote business capitals investment.

REFERENCE
WIKIPEDIA

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