1. US rules out bailout for Silicon Valley Bank, auctions reportedly underway 2. Apple CEO Tim Cook backs AR/VR headset, likely to launch this year 3. Infosys’ Mohit Joshi joins Tech Mahindra as MD and CEO

What exactly is Recession & are we in the peak of rough Economic patches?

Recession Economic-thefreemedia
Spread the love

The top concern on economists’ minds is whether or not we are in a recession as a result of volatile stock markets, exorbitant interest rates, and the pain of inflation. Probably not yet, but economic weakness is beginning to show.

What is a recession?

Recessions occur when the economy stops expanding and begins to contract. Some claim that occurs when a country’s gross domestic product, or the value of the goods and services produced there, declines for two straight quarters, or half a year.

A recession in the United States is defined as “a significant decline in economic activity” that is pervasive and lasts for several months by the National Bureau of Economic Research. This typically entails declining incomes, employment, industrial output, and retail sales in addition to a declining GDP.

When economic growth resumes, a recession is over.

Claim Free Bets

Why do some people think a recession is coming?

The short and simple answer is: the Federal Reserve 

The central bank is trying to slow the economy down, in order to curb inflation, which is now rising at its fastest pace since 1981. 

According to S&P Global’s chief US economist, Beth Ann Bavino, “the Fed is saying we’ve got to move now and frontload a lot of rate hikes before the situation spirals even further out of control.”

“Households prepare for a recession by saving. If people are depressed, worried about their finances or their purchasing power, they start to shut their pocketbooks. The drawback is that if everyone saves, the economy won’t expand.

Can recession be prevented?

Not really, politicians and government can do little to fully ward off recessions.

Even if policymakers were able to create a perfectly well oiled economy, they would have to exert influence over the way that people  think about the economy, too. 

    NISHA HIRANI

    NISHA HIRANI

    All Posts

    Related Post

    View All

    This journalist takes to hydroponics farming

    November 12th, 2021 | THE FREE MEDIA

    Spread the loveRamveer Singh, an erstwhile journalist, is making headlines and this time, it is not for his write-ups. Ram...

    Railways target 100% electrification by Dec 2023: Ec...

    January 31st, 2022 | THE FREE MEDIA

    Spread the loveThe Indian Railways (IR) has set a target of 100 per cent electrification of its network by December 2023, ...

    Buldozers enter Delhi, raze down constructions at vi...

    April 20th, 2022 | DRISHTI SHARMA

    Spread the loveNagpur: Buldozers make their way in Delhi’s Jahangirpuri to raze illegal constructions owned by riot accuse...