Have we, the Indians, understood the meaning of recession well enough, even after having gone through the entire ordeal?
The definition of recession could be a general slowdown in economic activity over a long period of time, or a business cycle contraction. But there is definitely more to it...
Recession dates back to 1797 when the US of A suffered its first recession caused by the deflating effects of the Bank of England as they moved towards America. However, the latest flare of recession, that we Indians could visualize started in mid 2008.
We hear the world say that the Great Depression is among the greatest financial catastrophes to hit the world in the entire history of human civilization....but this time probably the clutches of recession was stronger....for we suffered....and that too, terribly!
The administrative barons could not abrogate the recession even by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. Even today, when we are about to bid adieu to the year 2009, we are still getting hiccups from our recessionary past.
We all have experienced that the commodity prices are escalating despite the inflation hitting an all time low in the recent past. Though the indexes Has anyone ever questioned whether this is a ripple effect of recession? Have the greatest of great economists that the Indian soil has produced, ever squeezed their grey cells in finding out a solution to this? Has the much talked about G20 meet elicited any result? Has the Government ever bothered explicating the reason to the nationals?
No is the answer...and we, the Indians are at the receiving end..!!
So now is the time to ponder.....
