Beruflich Dokumente
Kultur Dokumente
Presented By
Amol K
Nimsarkar
PGDIM, MINDS
Bangalore
Before understanding
“Recession”,
we need to understand the
market
Economy
1] TWO and Market
STAGES OF MARKET ECONOMY --
GDP = Total
GDP valueVALUE
= MONEY of allOFthe reported
{C + I + G + (Xgoods
– M)} and
services
Consumptions, I = Gross Investments, G = Government Spendin
produced by the people operating
X = Exports, M = Imports in the country
3] What is Recession?
GDP is a good indicator of an economy; Other
indicators could be;
-Unemployment Rate
-Consumption Rate
-Actual Personal Income
-Etc..
A GDP, in simple terms, is used to gauge the
health of an economy then
If GDP is growing, then market is growing due to
increased demand;
Note: If the recession continues for next
quarter,
(>6 months) then we go through
3] What is Recession?
DEPRESSION
b)- LOW
a)- OVER
CONFIDENCE
PRODUCTION
LEVEL
5] Why Recession happens?
a)- OVER
PRODUCTION
Meals supplying company Demand for other goods Started saving money
got the hit come down instead of spending
Producers; Consumers;
Can produce and Can decide to
sell at their prices buy or not;
Both Producers and Consumers are free to act; Not a forced action
7] How to come out of recession?
, Government does not have direct control on Producers
mers’ behavior; But, they can influence millions of Producer
mers with Government’s policies.
If we advise our people to save money, then, the multiplication effect is that
the demand will not pickup and recession will continue; Very peculiar!! But, I
am not misguiding you; Just think from a macro level, if everybody in the
country stops spending, what will happen?
Accountancy magazine
The Economists
Amol K Nimsarkar
PGDIM, MINDS
Bangalore
29