Recession

In olden days of antiquity, when economic activities - like other social activities - were confined to a locale, recession wouldn’t be as fearful condition as it is today. In stark contrast to that, modern economies are tightly coupled together transcending national and international boundaries wherein economic recession is bound to become a global menace irrespective of its place of origin.

The domino effect was visible recently when a slow down in the US economy threw other economies off balance finally creating a state of panic all over the world. For those who are still uninitiated to this buzz word - economic recession is a period of general economic slow down indicated by a decline in GDP for two or more consecutive quarters. The ill-effects of recession are ramified in severe unemployment and mass lay-off, foreclosure or bankruptcy, crashing stock markets, surging inflation, etc.

It is not always easy to pin-point the possible reasons that spark economic recession. However, some of the factors that can set off recession in an otherwise smoothly running economy include uncontrolled inflation, increased national debt, and currency devaluation. 

Recession is by no means a permanent phenomenon. In normal circumstances a recession does not last beyond a financial year which is marked with increased governments’ efforts to contain the repercussions of recession by resorting to various economic aids to ailing financial institutions. 

Hopefully, the current recession passes sooner than most of us speculate. This tough time could be well utilized in testing the strength of survival instinct for “staying alive” than ruing the losses.