As the title says – what exactly causes recession? Especially in today’s times. I understand that Covid caused countries to spend more money, but on the other hand there was lots of remote work going on and big companies seemed to be doing quite fine (at least as far as I am aware). I am currently living in UK and I am specifically interested what causes recession in UK.
In: 0
It’s typically a decline in economic activity. That can be caused by a lasting massive drop in employment/income/expenditures/retail sales/production like during covid or a massive drop in values like in housing or dotcom bubbles. The fed spending more money isn’t necessarily a cause however, because money could be spent on wartime productivity or safety nets like rent moratoriums and soften a slump.
Latest Answers