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Showing posts from October, 2022

what is recession? In 2022 perspective.

What is Recession? Recession is a very vague term and has different definitions throughout the spectrum. Although there are some signs which can be considered to identify a Recession. On September 15, world bank has published an article on Recession ahead in 2023. World bank says that globally central banks of different countries are increasing interest rates to fight inflation. This hike in interest rates restricts inflation because when there is a hike in interest rates in any country then that results in a lesser number of loans taken by people. Which eventually results to a lesser purchases on luxury items or assets. Which decreases demand and results into a controlled inflation. Now the question still arise what is Recession ? All the above things related to inflation affects the economic growth of a country this slow growth can be considered as a Recession. In some cases economic growth rates might go into negative numbers which is disastrous for any country. That is