International Journal of Social Science & Economic Research
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Title:
THE IMPACT OF MACROECONOMIC FACTORS ON RECESSIONS: A COMPARATIVE ANALYSIS OF THE US AND UK

Authors:
Ritvick Gupta

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Ritvick Gupta
Delhi Pubic School

MLA 8
Gupta, Ritvick. "THE IMPACT OF MACROECONOMIC FACTORS ON RECESSIONS: A COMPARATIVE ANALYSIS OF THE US AND UK." Int. j. of Social Science and Economic Research, vol. 9, no. 1, Jan. 2024

References

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ABSTRACT:
Economic recessions, characterised by sustained declines in economic activity, have significant implications for societies and economies worldwide. Understanding the key macroeconomic factors that influence recessions is essential for policymakers, economists, and researchers seeking to foster economic stability and resilience. The research aims to identify key determinants of recessions, explore differences in their impact between the two countries, and identify specific factors with varying strengths in influencing economic downturns. The study adopts a comprehensive research design, combining quantitative analysis with Granger causality tests and qualitative examination of historical experiences and policy responses. While both countries share common determinants, certain factors exhibit varying degrees of impact, reflecting their distinct economic structures and policy frameworks. The findings suggest the importance of proactive fiscal policy, monetary policy flexibility, and a focus on employment during recessions. Furthermore, policy implications encompass the need for diversification of the economic structure and collaboration with international organisations for effective crisis management. The study identifies future research areas, such as global comparative analysis and incorporating behavioural and psychological factors, to further enrich the understanding of economic cycles. The policy suggestions offer actionable recommendations to enhance economic stability and resilience in the face of future recessions.

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