What Causes An Economic Recession? – Richard Coffin

The passage discusses the concept of recessions, which are negative disruptions to the balance between supply and demand in an economy. Recessions occur when there is a mismatch between how many goods people want to buy, how many products and services producers can offer, and the price of the goods and services sold. Inflation and interest rates reflect the relationship between supply and demand and can give insight into the health of the economy. Causes of recessions include natural disasters, war, geopolitical factors, over-extended borrowing, psychological factors, and even policy designed to prevent recessions.