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.
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People losing their jobs means the real economy (stuff) shrinks. That’s the recession, people not working. This happens after the money-economy shrinks. Aka people lose their jobs because something happens financially where people stop getting paid (debts go bad, so someone can’t pay someone, so that someone else can’t pay someone, and so on).
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