Wednesday, October 22, 2008


Dictionary Corner #34

Recession – noun

A temporary economic decline during which trade and industrial activity are reduced.

DERIVATIVES – recessionary adjective.

Another definition and explanation of recession from investopedia:

A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP).

Recession is a normal (albeit unpleasant) part of the business cycle; however, one-time crisis events can often trigger the onset of a recession. A recession generally lasts from six to 18 months. Interest rates usually fall in recessionary times to stimulate the economy by offering cheap rates at which to borrow money.

Have we not heard enough of recessions on the news! Between this and the economist posts...things aren't that bad! Seriously, unless I lost my job in the morning, I don't feel any worse off than this time last year.
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