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What is Economic Recession Final

What is Economic Recession Final

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Published by rko_udr
BY:ROMIT OSTWALRomit.ost@gmail.com
WHAT IS ECONOMIC RECESSION?
When GDP growth is negative for three consecutive quarters or more

Recession starts when there are several quarters of slowing but still positive growth. The first quarter of negative growth in a recession cycle is often followed by positive growth for several quarters, and then another quarter of negative growth.It does not take into consideration changes in other economic variables such as current unemployment rates or consumer confidence and spending levels.The official agency in charge of declaring that the economy is in a state of recession is the National Bureau of Economic Research.

NBER's defines recession as a "significant decline in economic activity lasting more than a few months".

It is actually quite natural for countries to experience mild economic recessions. This is a built-in factor of a societies economic cycle as spending and consumption are going to increase and decrease along with prices.
WHAT CAUSES ECONOMIC RECESSION?
A recession is primarily caused by the actions taken to control the money supply in the economy. The Federal Reserve is responsible for maintaining an ideal balance between money supply, interest rates, and inflation. When The Federal Reserve loses balance in this equation, the economy is forced to correct itself. In an inflationary environment. As individuals and businesses curtail expenditures in an effort to trim costs, this causes GDP to decline. Unemployment rates rise because companies lay off workers to cut costs. It is these combined factors that cause the economy to fall into a recession.
EFFECTS OF RECESSION
Higher levels of unemployment

Decline in housing prices

Decline in the stock market

Business expansion plans being put on hold.

About the only good thing about a recession is that it will cure inflation.

The balancing act the federal reserve must pursue is to slow economic growth enough to prevent inflation without triggering a recession.
THE EFFECTS OF THIS RECESSION ON INDIA
A credit crisis in the United States might lead to a restructuring of asset allocation at pension funds.

In terms of specific sectors, the IT Enabled Services sector may be hit since a majority of Indian IT firms derive 75% or more of their revenues from the United States--If Fortune 500 companies slash their IT budgets, Indian firms could be adversely affected.

The manufacturing sector has to ramp up scale economies, and improve productivity and operational efficiency, thus lowering prices, if it wishes to offset the loss of revenue from a possible US recession. The demand for appliances, consumer electronics, apparel, and a host of products is huge and can be exploited to advantage by adopting appropriate pricing strategies. Although unlikely, a prolonged recession might see the emergence of new regional groupings--India, China, and Korea?

The tourism sector could be affected. Now is the time to aggressively promote health tourism.

A recession in the United States may see the loss of some jobs in India. The concept of Social Security, that has been absent until now, may gain momentum.

The Indian Rupee has appreciated in relation to the US dollar. Exporters are pushing for government intervention and rate cuts.
United States Economic Recession History
Late 2000's Recession
Early 2000's Recession
1990's Recession
1980's Recession
1970's Oil Crisis
Late 1960's Recession
Early 1960's Recession
Late 1950's Recession
Early 1950's Recession
Late 1940's Recession
Recession of 1945
The Great Depression



Industrial Production January 2007-November 2008
Source: Federal Reserve

Net Change in U.S. JobsJune 2005 – December 2008
Source: Bureau of Labor and Statistics

Source: Energy Information Administration

List of Bankrupt Airlines
Dec 26, 2007 - Maxjet Airways files
March 31, 2008 -
BY:ROMIT OSTWALRomit.ost@gmail.com
WHAT IS ECONOMIC RECESSION?
When GDP growth is negative for three consecutive quarters or more

Recession starts when there are several quarters of slowing but still positive growth. The first quarter of negative growth in a recession cycle is often followed by positive growth for several quarters, and then another quarter of negative growth.It does not take into consideration changes in other economic variables such as current unemployment rates or consumer confidence and spending levels.The official agency in charge of declaring that the economy is in a state of recession is the National Bureau of Economic Research.

NBER's defines recession as a "significant decline in economic activity lasting more than a few months".

It is actually quite natural for countries to experience mild economic recessions. This is a built-in factor of a societies economic cycle as spending and consumption are going to increase and decrease along with prices.
WHAT CAUSES ECONOMIC RECESSION?
A recession is primarily caused by the actions taken to control the money supply in the economy. The Federal Reserve is responsible for maintaining an ideal balance between money supply, interest rates, and inflation. When The Federal Reserve loses balance in this equation, the economy is forced to correct itself. In an inflationary environment. As individuals and businesses curtail expenditures in an effort to trim costs, this causes GDP to decline. Unemployment rates rise because companies lay off workers to cut costs. It is these combined factors that cause the economy to fall into a recession.
EFFECTS OF RECESSION
Higher levels of unemployment

Decline in housing prices

Decline in the stock market

Business expansion plans being put on hold.

About the only good thing about a recession is that it will cure inflation.

The balancing act the federal reserve must pursue is to slow economic growth enough to prevent inflation without triggering a recession.
THE EFFECTS OF THIS RECESSION ON INDIA
A credit crisis in the United States might lead to a restructuring of asset allocation at pension funds.

In terms of specific sectors, the IT Enabled Services sector may be hit since a majority of Indian IT firms derive 75% or more of their revenues from the United States--If Fortune 500 companies slash their IT budgets, Indian firms could be adversely affected.

The manufacturing sector has to ramp up scale economies, and improve productivity and operational efficiency, thus lowering prices, if it wishes to offset the loss of revenue from a possible US recession. The demand for appliances, consumer electronics, apparel, and a host of products is huge and can be exploited to advantage by adopting appropriate pricing strategies. Although unlikely, a prolonged recession might see the emergence of new regional groupings--India, China, and Korea?

The tourism sector could be affected. Now is the time to aggressively promote health tourism.

A recession in the United States may see the loss of some jobs in India. The concept of Social Security, that has been absent until now, may gain momentum.

The Indian Rupee has appreciated in relation to the US dollar. Exporters are pushing for government intervention and rate cuts.
United States Economic Recession History
Late 2000's Recession
Early 2000's Recession
1990's Recession
1980's Recession
1970's Oil Crisis
Late 1960's Recession
Early 1960's Recession
Late 1950's Recession
Early 1950's Recession
Late 1940's Recession
Recession of 1945
The Great Depression



Industrial Production January 2007-November 2008
Source: Federal Reserve

Net Change in U.S. JobsJune 2005 – December 2008
Source: Bureau of Labor and Statistics

Source: Energy Information Administration

List of Bankrupt Airlines
Dec 26, 2007 - Maxjet Airways files
March 31, 2008 -

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Published by: rko_udr on Aug 20, 2009
Copyright:Attribution Non-commercial

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