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    3. Recessions: Prospects and Developments

    Recessions: Prospects and Developments

    Posted By: arundhati
    Date: 10 Jan 2025 23:47:28
    Recessions: Prospects and Developments

    Nerea M. Perez, "Recessions: Prospects and Developments"
    English | ISBN: 1604568666 | 2008 | 174 pages | PDF | 3 MB

    A critical consideration in understanding business cycles is the amplification and propagation of shocks to the economic system. Many recessions seem to arise without a clearly identifiable cause or at least one of significant magnitude to justify an economy-wide recession. How can a small shock cause large changes in the economy? What are the mechanisms that amplify a modest shock such that a serious recession ensues? Despite the persistent search for a mechanism for business cycle amplification and propagation, much research in business cycles seems to ignore the likely role of the financial system. If a shock to the economy inhibits the capital allocation capability of an economy, then a seemingly mild shock may be amplified through its impact on new investment thereby snuffing out economic growth and causing a recession. This book provides new research on the field of recessions from around the globe.
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