We’ve been hearing the word “recession” for quite some time now. While most of us are aware of the effect it has had the economies of the countries, it‘s cause is not quite well understood.
There are various opinions about what might have brought it about. A group of economists believe that the low interest rate on real estate and credit was to blame, while another group likes to say that there was an imbalance in the balance sheet of the world, which put pressure on the countries which lent the money. In layman’s terms, it means that countries lent money to other countries that could not pay it back in time, thus disrupting the balance.
