PARIS: Three types of recessions exist. The first type are those caused by major shocks, say an outbreak of war or a sudden, sharp increase in the price of petroleum. Recall that the OPEC oil shocks of the 1970's incited two world recessions. The second category of recessions arise by chance, for example when consumer confidence dips, or businesses become uneasy and cut back on investment and/or inventory. This was the cause of America’s recession in the early 1990’s.
PARIS: Three types of recessions exist. The first type are those caused by major shocks, say an outbreak of war or a sudden, sharp increase in the price of petroleum. Recall that the OPEC oil shocks of the 1970's incited two world recessions. The second category of recessions arise by chance, for example when consumer confidence dips, or businesses become uneasy and cut back on investment and/or inventory. This was the cause of America’s recession in the early 1990’s.