शनिवार, 7 जून 2008

US Recession

Slowdown in US Economy

Malavika Chandel

In 2007, the American economy began to slow significantly, mostly because of a real-estate slump and related financial problems. Many economists believe that the economy entered a recession at the end of 2007 or early in 2008. A committee of academic economists, overseen by the National Bureau of Economic Research, makes the most commonly cited determination about when recessions begin and end. Because the committee defines a recession as a broad-based and protracted downturn in economic activity, its members typically wait many months before announcing that the economy has entered a recession. They have made no such announcement lately. Instead, recent economic indicators point to the possibility of stagflation - a slowdown in economic activity combined with rising prices not seen since the 1970s.

Herewith, I am giving some of the important economic terminologies for the understanding of the readers:

  • Recession: Some economists define recession to be a period of two successive quarters of negative GDP (Gross Domestic Product) growth. But this is not universally accepted. The US national Bureau of Economic Research defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months”. A recession, it says, may involve simultaneous decline in measures of overall economic activity like employment, investment, and corporate profits.

  • Depression: A severe or long Recession.

  • Stagflation: A period of time characterized by high inflation and recessionary conditions. It is an economic condition of both continuing inflation and stagnant business
    activity. Stagflation is a period of slow economic growth and high unemployment(stagnation) while prices rise (inflation).

  • Gross Domestic Product: The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country's economy. GDP is defined as the total market value of all final goods and services produced within the country in a given period of time (usually a calendar year).


5 टिप्‍पणियां:

तेजेन्द्र शर्मा ने कहा…

Dear Roop Singh jee

It gives great pleasure when we see our younger generations joining hands in endeavours that are so close to our hearts. Mostly the younger lot creates a world of their own where they do not have space for the older generation. It is heartening to see Malavika Chandel sharing with the readers of Rachna Samay her point of view about American Recession, which has nearly killed so many economies. We welcome her on this site and hope this is not just one off guest appearances. We would like to read more from her.

Pleasey convey my aashirwaad to her.

Tejinder Sharma, Katha UK, London

सुभाष नीरव ने कहा…

Very good Malavika ! You can write and post such type of articles in Papa's blog- Rachna Samay. It will no doubt, be helpful for them who are working in this field. Keep it up. Congratulations and best wishes !

J.L. Gupta 'Chaitanya' ने कहा…

Wonderful Malavika. Its fairly good to make such an attempt as a part of your economic thinking. Let your persona emerge by such good piece of writings as you appear to have got your roots in this discipline. Must excel in every way, as a writer and thinker too.
But I was badly concerned about the skyrocketting prices of essential commodities in India. Will you like to share us your thoughts in future to curb the rates of inflation in India.
I have a lot of feeling for you as my loving daughter too. Just keep with patience.May you emerge as a good economist. Congratulations.


बेनामी ने कहा…

Dear Chandel,
It is nice to see your daughter joining your blog with her economist thoughts. Convey my heartiest greetings to her.

Unknown ने कहा…

Chandel Ji, It is astonishing to see Malvika on ur blog with such a command over the subject other than our usual literary articles generally seen. So, baton of tradition has been shifted to the genext. Congratulation, Malvika !