StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Recession - Research Paper Example

Comments (0) Cite this document
Summary
First Name M. Last Name University Course Number Date Macroeconomic Principle: Recession Introduction The recent economic report of Pylas and Rising (2013) is related to one of the macroeconomic principles - recession. The report announced the unexpected drop of Germany’s economic output/income…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Recession
Read TextPreview

Extract of sample "Recession"

Download file to see previous pages According to Wiegand (2009), recession takes place when a country’s gross domestic product (GDP) “goes down for six months or more” (p. 18). Also, when recession transpires, a series of economic problems will arise, including unemployment, inflation, adjustments of investments, additional credits, declining values for goods and services, cutting out exports, higher interest rates, and dropping of currency. These problems influence the economic performance of the world market, particularly the European Union (EU). The purpose of this paper is to analyze a recent economic report in relation to recession, and its application in the outside world. Recession and its Problems The phenomenon of recession occurs when the economic development of the country decreases to “less than three percent” (Wiegand, 2009, p. 19). It has been illustrated that Germany has a GDP contraction rate of 0.6%, “more than the 0.4% expected for the 4th quarter of 2012” (Pylas & Rising, 2013); the figure shows that the country is nearly in recession, and will be into it if the decline will continue in the following year. Unemployment. In case of Germany’s economic contraction, it is then projected that several establishments will reduce their output due to a lesser demand; hence, the level of unemployment will increase (Pylas & Rising, 2013). Also, the shutting down of businesses will lead to redundancy; in fact, this has been one of the serious problems in EU as shown in figure 1 (“Taking Europe’s Pulse,” 2013). Figure 1: Unemployment Rate in the EU Source: “Taking Europe’s Pulse,” 2013 The figure above shows that the unemployment rate of EU members, such as Greece, Spain, Portugal, and many more, is very high since 2012 compared to other members like Germany. Inflation. Germany’s exporters are also concerned on the set-up that their product became “less competitive in the international marketplace” (Pylas & Rising, 2013). According to Wiegand (2009), in case of inflation, the value of money decreases over time while the “price of commodities increases” (p. 23). The declining economic performance of Germany would conceive inflation in terms of purchasing value. Otherwise stated, the amount of money spent on buying a particular good does not maintain its value as times passes because the price of commodities has been increased. For instance, a 10-euro bill in the year 2000 could buy a lot of stuff compared to a 10-euro bill of today. Hence, inflation brings difficulty to consumers in buying their needs and wants, which will result to merchandise unsold. While inflation is the increase in prices, its opposite--deflation, also brings harm to the economy. Deflation happens when the prices of goods and services plummeted consistently and creates surplus of supply and lesser demand (Wiegand, 2009, p. 24). Foreign exchange market. Several exchange rates are being established in different countries depending on recent trading performances among countries. Their currencies depict the stability of their economic activity. The stability of euro (€) is one of the primary issues that EU members would be highly concerned of considering that they are using the euro as their “single currency” (“One Currency,” n.d.). Frequently, the idea of exchange rates is very confusing; ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Recession Research Paper Example | Topics and Well Written Essays - 1750 words”, n.d.)
Recession Research Paper Example | Topics and Well Written Essays - 1750 words. Retrieved from https://studentshare.org/macro-microeconomics/1468397-recession
(Recession Research Paper Example | Topics and Well Written Essays - 1750 Words)
Recession Research Paper Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/macro-microeconomics/1468397-recession.
“Recession Research Paper Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1468397-recession.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Recession

Problem of Economic Recession

...an attempt to provide some general ideas about recession and then it will discuss the issue of current economic recession. Definition of recession: Technically speaking, the word ‘recession’ refers to decline in gross domestic product or GDP of a country over a period of two successive quarters. This kind of definition, is, however, not capable enough of providing a clear idea regarding recession. To understand recession, first one need to have a clear idea regarding what is actually meant by G.D.P or gross domestic product. Gross domestic product of a particular year can be defined as the value of all the final goods are services...
13 Pages(3250 words)Term Paper

Analysis of The Global Economic Recession

...be explained in order to grasp the requirements needed to be taken into consideration before carrying out business across national boundaries. According to an IMF research document published in 2008, “the world economy is decelerating quickly, buffeted by an extraordinary financial shock and by still-high energy and commodity prices and many advanced economies are close to or moving into recession.” The global economic recession has seen many economies world wide slumping resulting in loss of jobs in some instances as well as a reduction in disposable income. Instead of growing, the economies across the world are instead declining and these have negative impacts across the spectrum. It should be noted that there are quite a number of...
10 Pages(2500 words)Research Paper

The Great Recession and France

Some countries have pushed for an international consensus on issues of concern to all. France, which has suffered severely from the crisis, with an economic contraction and rising unemployment, has tried stand in opposition to the UK and the United States both of which believe minor financial regulations can alter and improve the situation—France would like to see more wide-ranging reforms accomplished through the increased unification of Europe. Efforts to deal with the crisis have led the French government to seek out more partners in Europe and try to push Europe wide reforms and a sort of European (as opposed to American) new capitalism. The government of Sarkozy has criticized British tax cuts and suggested the key to g...
8 Pages(2000 words)Coursework

The Current and Ongoing Recession in the Global Financial Markets and Economies

... in proving the hypothesis. However, it is essential to mention that according to the statistics of November 2009, United States has currently about 10% of unemployment rate. In addition, United Kingdom is witnessing an unemployment rate of 7.8% according to the data until September 2009. Important to note is that both of these big countries in terms of economy are facing a serious recession. Aggregate Demand With any doubts, John Maynard Keynes deserves admiration and appreciation for bringing a revolution in the world of economics. Despite the facts that it has been more than five decades, that he has left the world but still is remembered amongst all the economists. His greatest achievement was providing the explanation of the great...
8 Pages(2000 words)Essay

Is the UK Economy out of Recession

...in economic growth, as it came out of recession, during last quarter of 2009. While Europe’s two strong economies, namely Germany and France came out of recession, during the mid of 2009 and Japan also was out of recession last year, UK economy remained last to exit from the global crisis. However, signs of recovery, although very weak, are visible from various data. This includes the rate of unemployment, which fell for the first time in 18 months, during the last week of 2009 and first week of 2010. Reflecting on the slow signs of growth, BBC chief economics correspondent Hugh Pym, has said that “Britain has just crossed the line in coming out of recession.”……(BBC...
7 Pages(1750 words)Case Study

How Supermarkets in the UK Have Coped with the Recession

... in Britain has managed to control the effects of the recession on their performance; the introduction of appropriate marketing tools has been proved to be the most common strategic tool used by the British supermarkets from 2008 onwards; the level of effectiveness of these firms’ strategic policies during the recession is examined and evaluated; the common consequences of the recession the organizational performance are also discussed as they can help to the understanding of the strategies used by the British supermarkets in order to face the current financial crisis. 2. Supermarkets and recession – the case of UK The financial crisis that started in 2008 has adversely affected the operation of firms in all industrial sectors; supermarkets...
8 Pages(2000 words)Case Study

Effects of Economic Recession on American Jobs

... the economic recession when the whole world had actually completely soaked in it. The circumstances took a fortunate turn in the last three months of 2009, and the economy began to grow and become strong, though the graph soon took a downward turn specifically in the later half of 2010 when the growth of GDP in US fell to 2 per cent. “The federal stimulus money that has added at least 1% but likely 2% or more to the GDP growth will be winding down and that could put at least as much of a drag on the economy as the boost it gave” (Hall). When the recession was at its apogee, the years were full of pain for a lot of Americans because they had lost jobs. According to an estimate, as many as three quarters of a million jobs were being lost...
6 Pages(1500 words)Coursework

The Great Depression and the Great Deal of Recession

..., there is a difference between depression and recession. An economic recession occurs when total sum of productivity falls and lasts for a long time interval. It is identified in U.S when a fall in gross household products and the total yield of goods produced lawfully occurs for two consecutive quarters (Foldvary, 2007). On the other hand, depression of an economy takes place when there exist a tremendous decline in output below a long- run tendency (Foldvary, 2007). It commences during a recession when Gross Domestic Product (GDP) drops below the long- run trend but does not end there. It ends in recover when GDP goes up above the same trend. This means that an economy is still in...
6 Pages(1500 words)Term Paper

The European sovereign debt crisis dominated international financial markets during 2010-2012. Economies fell into recession and financial market volatility was high

... in some other nation or region can have an adverse and severe impact on the situation in the home country. Thus, the sovereign debt crisis and recession in Europe have substantially impacted US exports and the stock market (Steiner, 2012). This crisis has consequences for global trade, and the protracted recession in Europe has brought about a slow down in the global economy. Thus, it can be surmised that the sovereign debt crises has affected the global economy. References Arellano, C., Conesa, J. C., & Kehoe, T. J. (2012). Chronic Sovereign Debt Crises in the Eurozone, 2010-2012. Region, 26(2), 4 – 11. Blundell – Wignall, A., & Slovik, P. (2010). A Market Perspective on the European Sovereign Debt and Banking Crisis. OECD Journal...
8 Pages(2000 words)Essay

Talent management in a recession

...changed the talent game? Six guideposts to managing talent out of a turbulent economy” following the release of the report earlier in 2010. The objective of this study is to articulate the challenges of talent management during recession and the ways in which they may be solved. Literature Review In face of an economic recession, financial crisis or credit crunch, various corporations may choose to focus on retrenching a section of employees, restructuring the corporate leadership through change management, or devising various cost-cutting strategies (Arthur 2011, p 89). Through such strategic operations, the corporate strategists and leaders often downplay the value of talent management in the...
9 Pages(2250 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Recession for FREE!

Contact Us