Friday, March 20, 2009

Are Recessions Inevitable?

Readers Question: Are Recessions inevitable?

After we enter a recession, we inevitably start looking for people to blame. Everyone becomes an expert on what we could have done to avoid the recession. Yet, it wasn't so long ago people (especially Gordon Brown) were talking of a new era which had transcended the boom and bust economic cycle of previous decades. To some extent he was right, we at least didn't have an economic boom this time.

Are recessions inevitable?

First, some examples of recessions

Examples of Recession

These examples of recessions show that there are different reasons for recessions in each case. It is difficult to decide whether they could have been avoided or not.

Defining Recessions

Causes of Recessions

Dealing With Recessions

Another issue is how long will recessions be? There is no right answer. In our essay on the Great Depression, it seems many mistakes aggravated the initial downturn.

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