What is the Meaning & Definition of recession
In macroeconomic terms, a situation or State of recession characterized by the decrease continued that you suffer from gross domestic product in a given country, in other words everyday and more understandable, the recession will take place without a doubt when the common persons no longer invest their money in cash and change opt to keep it in their hands. Usually this continued decrease which will suffer the economic activity of a nation, two or more quarters, occurs as a result of economic shocks.
When the State of recession is permanent, i.e., exceeds the two quarters and extends, usually described as depression, surely, many of you reading this review have heard talk of the economic depression that happened in such a year in 10th place. Meanwhile, when the recession is short in time, is usually called it economic correction. And those more alarmist and ends, also tend to change the term recession by the crisis.
Bridging the gap is clear, the economic recession is like pregnancies, i.e., in these last is must wait three months to confirm them, insofar as possible, in the case of the economy it will also be necessary to wait, approximately six months are sufficient for talk of a recession made and right.
But of course one can anticipate a recessive context thanks to some symptoms that often recur in these types of scenarios such as: increased unemployment, as there is no growth there is no possibility of creating new jobs and of course increase the chances of layoffs; decrease in consumption, which can occur on the one hand by inflation or price increases or decrease in consumption capacity; increase in overdue credit portfolio, by the inability of payment of debtors, the increase in interest rates.
The greater economic downturn that occurred during the last century and so this is these days as a consequence which is in sight for the next few months, was the depression of 1930 which suffered from a brusquisima stock market fall similar to that occurred several months ago at Wal Street.
When the State of recession is permanent, i.e., exceeds the two quarters and extends, usually described as depression, surely, many of you reading this review have heard talk of the economic depression that happened in such a year in 10th place. Meanwhile, when the recession is short in time, is usually called it economic correction. And those more alarmist and ends, also tend to change the term recession by the crisis.
Bridging the gap is clear, the economic recession is like pregnancies, i.e., in these last is must wait three months to confirm them, insofar as possible, in the case of the economy it will also be necessary to wait, approximately six months are sufficient for talk of a recession made and right.
But of course one can anticipate a recessive context thanks to some symptoms that often recur in these types of scenarios such as: increased unemployment, as there is no growth there is no possibility of creating new jobs and of course increase the chances of layoffs; decrease in consumption, which can occur on the one hand by inflation or price increases or decrease in consumption capacity; increase in overdue credit portfolio, by the inability of payment of debtors, the increase in interest rates.
The greater economic downturn that occurred during the last century and so this is these days as a consequence which is in sight for the next few months, was the depression of 1930 which suffered from a brusquisima stock market fall similar to that occurred several months ago at Wal Street.