Is Recession Nearby? : Recession & Inflation – Relationship Explained

Recession and Inflation – Relationship explained

While there seemed to be a sudden spike of enthusiasm among the youth on investment decisions, the World Back became a killjoy with regard to this optimistic environment. Lay-offs became a leading light in the current economic condition as companies started looking for every means to survive this downturn until sales spike up to dependable conditions.
All of this accounts to economic slump called ‘Recession’.

To comprehend what exactly is happening, we’ll figure out the two buzzwords in the market at the moment: Inflation & Recession.

The gist of rise in inflation is in its cyclical behaviour, meaning, when there is a lot of economic activity in the form of sudden spurt in production and the industries seem to be set up in plenty. As a result, the economy booms or let’s say, overheats. (See the video above)

Why? There’s a substantial increase in income generation and at the same time the Central Bank also starts printing money in the initial stages. Subsequently, the economy observes a rise in price level which therefore turns out to be inflationary. When this inflation kicks in, the Central Bank tries to bring down the supply of money by increasing the interest rate.
This automatically reduces the money supply since the demand for money increases and consequently the economic activity reduces.
This is because the investors start chasing interest rates and not economic activity. So, when this happens, economic activity slows down and inflation declines. Hence, Cyclical!
Sounds simple right? Well not really.

This reduction in money supply is fertile for recession which happens due to fall in economic activity. What could be the possible reason for this recession? An idea is that, a boom in the economy results in inflation, and when you try to control inflation, you have a dip or slump called recession. Recession is commonly defined as the two consecutive quarters of economic contraction. “It is a significant decline in economic activity that is spread across the economy and lasts  more than a few months.”, defines the National Bureau of Economic Research.

The effects of recession might quite possibly amplify the effects of inflation although it is in the cooling period. Since recession is roughly the slowdown of economic activity, businesses struggle to keep their head above water and lay off employees to curtail expenses until the resumption of reliable economic activity. Since labor is one of the crucial factors of economic activity, there will be a spike in unemployment.
And, this will last about a few months or up until the output that has plunged among businesses goes up significantly.

Punardarśanāya (पुनर्दर्शनाय)

Goodbye is a misnomer. How can be parting any good?
Only, if you had said Good-riddance, it would have made sense.
What we like, we always wish to postpone its departure.

You see, life goes on, we feel that a phase of life, a moment, could be captured and relived as many times as we can, or worse, we wish to freeze moments and live forever in moments; life doesn't work like this expectation of ours!

We always need to let go of 

I'm reminded of this famous line, "I suppose in the end, the whole of life becomes an act of letting go..."

The intention of a 'Goodbye' in my mind & heart, is : It was great to spend time with you, I wish you the best, take good care of yourself!
And, you just let go of the sight, touch & physical presence. How? How are we supposed to take good care of ourselves in the absence of what kept us ticking, what motivated us from the troughs of our menial existence? How?

Perhaps, we could pack it up with hope? Let's do it sooner (and mean it!)

पुनर्दर्शनाय! (Punardarśanāya)

A Clean Slate

Human beings are more than nature or nurturing.
Every human comes with immense potential to make everything a reality, whatever he/she can think and put his/her attention towards.

Now, all of us, are surrounded by so much noise of society, its bundle of one-size-fits all processes & guides, that we cease to access our own individual source of authenticity. We start becoming copy of a copy of a copy, that too with our individuality smeared across each copy!
Who gains? 
Greed of Society!
Who loses?
Need of Society!

“He, who has a why to live for, can bear with almost any how.” - Viktor Frankl

Each one of us, have different 'Why's', our own 'Why'!
Once we figure that out, we can write any script on our clean slate. Yes, we need to erase every impression of the societal conditioning before we can start chalking about our life plans. We need to seek originality, this requires utmost honesty with our true self; which is the 'clean slate'. You can be whatever you put your thoughts, intentions & actions to.
There is no need lamenting your flaws, lack of privilege, unique circumstances or any such constraints, which seem to bind your tether to the state of inertia. Your authenticity stems from your rough edges, so stop seeking that ideal situation!

I do understand that we all have different abilities & Pātrata, it's wise to understand what could give us the maximum returns for our labour & time, that being said, it's just a constraint, nobody can stop someone who has decided not to quit!