Source: Cobden Centre
by Dr. Frank Shostak
“Most economic commentators consider a weakening in economic statistics such as gross domestic product (GDP) as indicative of a weakening in the economy. According to most experts this decline in the GDP, which is labeled a recession, as a rule arises because of a decline in the overall demand for goods and services. This is seen as predominantly because of a decline in the private sector’s buying of goods and services. Consequently, it is recommended that the central bank should step in and strengthen the private sector’s demand. … We suggest that the subject matter of recession is not a weakening of GDP and various other economic indicators as such but the liquidation of various nonproductive activities that have emerged on the back of the easy monetary policies of the central bank. We label these activities bubbles.” (06/05/25)
https://www.cobdencentre.org/2025/06/why-recessions-are-not-about-declining-gdp/