domingo, 15 de mayo de 2011

Crisis, recession and economic cycle

Crisis, recession and economic cycle
The economic crisis term, is more used in a common language than in a technical language, and is used to recount to the point of cessation of the expansion of a economy, or to a period of intense recession. The recession term, is then a phase of the economic cycle, that is demonstrate in a notable decrease of the employment, the production an the economic activity in general.
In a recession epoch, happens several phenomenon, like the Low investment, and the deflation. Apart from these two, also is used the depression term to denote a recession or a economic crisis very long.
But concepts before explained, they are not another thing than a derivation of a concept so much big and complex, that is the economic cycle, that will be explain now.
The economic cycle is a normal fluctuation of the economics activities in the long term, which is measured agreement with the variations of the internal brute product.
The economic cycle, is divided in two big phases: one of the expansion and growth, where there are a big economic activity and full employment; and the recession or contraction where descend all this variables.
At the end of the VIII century was observed that the economy doesn’t grew or decrease in a good way, only were appearing rises and falls that happens in a cyclical way, however, every growth phase was representing a bigger than the previous one, some experts determined that every cycle lasted 10 or 11 years however, It is necessary to bear in mind, that every national economy has her growths agreement with her development.
They have been generated numerous debates in order to define the economics cycles, but the most accepted explain speak about that the economic crisis begins with an insufficiency of demand suitable to keeps the levels of production in the most high point of the expansion and when diminished the production diminished the employment, that carry a of a new to decrease of the demand and a on offer goods that carry of a goes down prices unavoidable, and this, tends to car to feed and will arrive at expansion again, showing other economic cycle, but this is not a generalized theory, it´s a description of the facts that happens in the history.
However, and agree with the development of the actual world and with the information evolution´s acceleration, now they are more well-prepared with the economic depressions, that have not comparison with the before economies, and are less harmful to the economic world, however obviously they are inevitable.

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