Inflation and Recession Cycle: Impacts over Global Economies and Markets

Cash in savings accounts, short-term CDs or money market deposits is great for an emergency fund. But to fulfill a long-term investment goal like funding your retirement, consider buying stocks. The more distant your financial target, the longer inflation will gnaw at the purchasing power of your money. Suze Orman The purpose of this study is to understand rise in inflation and emergence of recession after inflation. The major causes for the occurrences of the two economic situations. Further is to relate the global economies with the concepts of inflation and recession and to study how and what changes and shifts inflation to recession. The major impacts they have over the economies and the markets. The study is to understand the two big parts of the economic cycle or boom–bust cycle globally. Keywords-Boom Burst cycle, Economic cycle,Inflation, Recession.