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Demand shocks occur when the demand for products drops as people stop earning money. A tactic to fix this is to stimulate the economy. In 2008, Australia gave households cash and encouraged them to spend to jumpstart the economy.
In 2020, the problem is also a lac...
Now is a good time to fix parts of the economy we don't like as part of the recovery.
Supply shocks occur when people still have money to spend but cannot do so because shops are closed, or prices have shot up.
The 2020 crisis is a mix of supply and demand shocks, brought on by furloughing and temporarily preventing work in specific sectors. This makes it ...
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.. was a devastating economic collapse which started in the US in 1929, lasting a decade. Europe was already struggling post the WWI recession, while the US was thriving. As borrowings and stock purchase increased, Wall Street went into a meltdown as soon as the share prices nosedived. This l...
Recessions are part of the fabric of a dynamic economy. The average investor fears recessions because they mean lower home prices, lower stock prices, and less or no work.
Several things can cause, or worsen, a recession — soaring interest rates, or ill-conceived legislation. If you unders...
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