Depression vs Recession
将其归咎于经济衰退还是沮丧?抑郁和衰退是我们在当今经常听和阅读的两个词。由于他们的经常使用,即使是路上的茶卖家,现在也了解了这两种现象的含义,即一个国家的经济有时会面临。每当我们的工业产出低,销售低和投资较低时,我们知道谁应该责怪谁?经济中的衰退和沮丧是经济中的坏男孩,每当市场上陷入困境长时间时,他们准备承担责任。但是,您认为您对这些密切相关的经济现象之间的差异有答案吗?让我们找出答案。
Even if one is a novice and doesn’t know anything about depression and recession, there is a good chance that he has heard about the hardships faced by his grandfather or father around 1930 during the great depression that shook the country, and when production figures hit their lowest ebb, and unemployment was at its peak. The difficulty in understanding the concepts stems from the fact, that there is no universally accepted definition of either depression or recession. However, GDP is a good indicator of these phenomenon, and some economists are of the view that if GDP continues to fall for 6 months, the economy can be said to be in the grip of a recession. Again, with no strict parameters to judge depression, depression is said to have taken over, if the fall in GDP is more than 10% ,and if it continues for more than 2-3 years. So, in general, the difference between recession and depression is one that of severity and duration. While depression is more sever and lasts longer, recession is lighter and lasts for much smaller time periods.
However, it would be wrong to look at just one indicator before declaring that the economy is in the throes of depression. You would be surprised to know that there are people and organizations that earn living by recording indicators that predict recession or depression. One such organization that sniffs symptoms of recession is National Bureau of Economic Research, and its opinion carries much weight when the onset or ending of the dreaded depression is to be announced. So even if we do not feel it, we are in the grip of a recession if NBER says so.
When industrial production falls, unemployment goes up, and people are less willing to part with their money in the form of investments, one can assume that recession has struck economy. There is less money to go around and consumers are not in a mood to overspend. If these things happen for more than two quarters, recession is said to have struck the economy. If the situation persists for more than a year and the GDP falls for more than 10%, depression is said to have set in.
Recessions are more frequent than depressions, and economies are resilient to sustain the impact of such recessions. Economic recovery takes place on its own or through change in economic policies as central banks devise ways to make an economy come out of a recession.
Politicians use these words to further their interests. To criticize an economic policy, a politician may cite recession as much more severe than it is and equate it with depression and vice versa.
简而言之: Difference Between Depression and Recession • Depressions are more sever and last longer than recessions •如果工业产出连续六个月下降,则据说经济处于经济衰退的障碍中。但是,如果一年后的GDP持续并下降超过10%,则据说抑郁症已经陷入困境。 •While the economic downturn in 2008-2009 is termed as recession, the events in the early 1930’s are recognized as a great depression when industrial production fell by a mammoth 33%. |
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