In earlier times people used bronze to make tools. Jewelries and even money as a medium of exchange. And in some counties gold was used for it.

But suddenly the value of bronze begin to decline and it caused an economic crises, or as we call it a Recession today. But what causes Recession? It has been a topic of heated debate among the public and the economists as well.

This Is Now You Know and in today's video we will tell you what exactly is the cause of Recession

Recession is a decline in an economy in a single country that lasts for a few months or a global down downfall of economy that lasts for years.

There are a number of factors that contributes to an economic health so it is a bit difficult to pin point one specific causes.

Recession occurs when there is a negative disturbance between the supply and demand. There is difference between how many product customers wants to buy, how many the producers are offering and the price they are offering it at.

Supply And Demand is indicated in Inflation and interest rates. Inflation occurs when the value of money decreases and low interest rates allows the companies and individual to take loans.

And this fluctuation shows how healthy or disturbed an economy is. These fluctuations are caused by war, political factor or natural disasters. When these factor decreases the demand because of the high prices it causes Recession.

Even Psychology plays a huge role in recession. If the investor thinks that the economy is slowing down he can pull his money resulting in decreased productivity. This can start a cycle of Low Productivity, Low Wages and Low Demands.

Modern market are complex as making recession more complex and difficult to understand. But each Recession provides data to deal with future uncertainty and Recession.