Attributes
A recession has many attributes that can occur simultaneously and includes declines in component measures of economic activity (GDP) such as consumption, investment, government spending, and net export activity. These summary measures reflect underlying drivers such as employment levels and skills, household savings rates, corporate investment decisions, interest rates, demographics, and government policies.
Economist Richard C. Koo wrote that under ideal conditions, a country's economy should have the household sector as net savers and the corporate sector as net borrowers, with the government budget nearly balanced and net exports near zero. When these relationships become imbalanced, recession can develop within the country or create pressure for recession in another country. Policy responses are often designed to drive the economy back towards this ideal state of balance.
A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to as an economic depression, although some argue that their causes and cures can be different. As an informal shorthand, economists sometimes refer to different recession shapes, such as V-shaped, U-shaped, L-shaped and W-shaped recessions.
Read more about this topic: Contraction (economics)
Famous quotes containing the word attributes:
“Even though fathers, grandparents, siblings, memories of ancestors are important agents of socialization, our society focuses on the attributes and characteristics of mothers and teachers and gives them the ultimate responsibility for the child’s life chances.”
—Sara Lawrence Lightfoot (20th century)
“Why does not the kitten betray some of the attributes common to the adult puss? A puppy is but a dog, plus high spirits, and minus common sense. We never hear our friends say they love puppies, but cannot bear dogs. A kitten is a thing apart; and many people who lack the discriminating enthusiasm for cats, who regard these beautiful beasts with aversion and mistrust, are won over easily, and cajoled out of their prejudices, by the deceitful wiles of kittenhood.”
—Agnes Repplier (1858–1950)
“God is the efficient cause not only of the existence of things, but also of their essence.
Corr. Individual things are nothing but modifications of the attributes of God, or modes by which the attributes of God are expressed in a fixed and definite manner.”
—Baruch (Benedict)