by Rajveer Rawlin
Market Oracle
Definition of a Recession:
The textbook definition of a recession is two quarters of negative GDP growth. Some examples of recessions include the great depression of the 1930’s, the dotcom crash of 2000 and the great recession of 2008.
Causes of a Recession:
Recessions are caused by several factors. These include:
– Hyper Inflation
– Deflation
– Prolonged Fall in Exchange Rates
– Credit Crunches
– Collapsing Consumer Confidence
– Collapsing Asset Prices
– Collapsing Global Trade
– Bust following Excessive Speculation – e.g., Property Market in Japan -1989