Why Recessions Happen and How to Counter Them Investment booms foster excesses (for instance: excess capacity) that, invariably lead to investment busts. But, economy-wide recessions are not triggered exclusively and merely by investment busts. They are the outcomes of a shift in sentiment: a rising demand for money at the expense of the demand for goods and assets.Keywords:
Sam Vaknin, transition, microeconomics, macroeconomics, business, government, privatization, private sector, public sector, capital, markets, stock exchange, shares, bonds, finance, banks, savings, credit, money, currency, taxation, IMF, International Monetary Fund, World Bank, IFC, EBRD, investment
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