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Recession and Economic Vulnerability

Recessions are always debated long before they occur. This is why it is usually too late to anticipate a recession, because no immediate action is taken.

By
A Prasetyantoko
· 7 minutes read
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Recessions are always debated long before they occur. This is why it is usually too late to anticipate a recession, because no immediate action is taken.

A recession generally has two dimensions: economic vulnerability as a fundamental factor and panic as a trigger of economic turmoil. Severe recessions are usually caused by fundamental weaknesses accompanied by widespread panic. The two have a mutually negative influence to cause a spiraling down of the economy to the brink of deep recession.

Editor:
naranasrullah
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