Inflation In Recovery At Last? By Paul Krugman

Recession is a period of temporary economic decline during which trade and industrialactivity are reduced, generally identified by a fall in GDP in two successive quarters. There aremany factors that cause an economy to fall into recession, but one major cause is Inflation.Inflation is the rise in prices of goods and services over a period of time. If the rate of inflationincreases in an economy then there will be a smaller percentage of goods and services that can bepurchased with the same amount of money. Inflation can also happen under the circumstances asvaried as increased production costs, higher energy costs and national debt. Thus, Recessionoccurs when people spend less as the prices of goods and services rises. The first article, "Consumer

Lindsey Piegza, a chiefeconomist at Sterne Agee believes with confidence that it has rebounded more than economicgrowth. Now the Americans assume that their spending accounts were about two third of theeconomic growth. The second Article, "Recovery At Last ?", by Paul Krugman is in my opinion,presents similar information about the U.S economy. Recovery basically means the increase inbusiness activity signals the end of recession and beginning of a growth in economy. He reportedthat last week the U.S published a good employment report. The U.S economy added well over300,000 jobs, wages, which have been stagnant far too long. Krugman also said that the U.S is

economy as a result of not only recession in the country,but also the slowing down of economic growth in other countries. Europe has not fully recoveredfrom its financial crisis and it might affect the U.S. due to the latter's dependence on othercountries for exports. The Minskian notion, from the economist Hyman Minsky, states thatovertime, capitalist economies will undoubtedly suffer from issues that plagued the U.S.economies recently, since capitalist systems encourage the growth of debt. The author providedgraphs and data for the GDP of emerging economies, such as China, and in comparison to theU.S. However, although these might look like credible facts, they are not up to date (none arerecorded for 2015), and therefore might be used to sway the reader's opinion on the matter. As aresult, since Europe are currently in crisis which leads to lack of exports, it will cause a lack insupply in U.S as they have the disadvantage in imports. When supply decreases, people will wantmore which cause an increase in demand, when demand increases the prices of goods willdefinitely rise which at the end might result in an inflation in the economy.The Government policies that were used in the 4 articles was national fiscal and monetarypolicy. The