Inflation vs Recession: How One Can Trigger the Other—and the Economic Shocks You Cannot Predict
Inflation And Recession Guide By Zeeglobalvision | Prices, Growth, Interest Rates, Stagflation And Economic Shock Preparedness Inflation and recession are often discussed as if they were opposite economic events. They are not. Inflation describes a broad rise in the general price level of goods and services over time. Recession describes a significant decline in economic activity spread across the economy. One is primarily about prices . The other is about output, income, employment and economic activity . They can happen separately. One can contribute to the other. And under the wrong conditions, they can happen together. Zeeglobalvision Economic-Cycle Principle: Do not ask only whether inflation is rising or whether GDP is falling. Ask what is causing the change, how policy is responding and which part of the household or business balance sheet is most exposed. First: What Is Inflation? The Federal Reserve defines inflation as a general increase in the prices...