Topic: What is the cause of economy rise and fall. - page 5. (Read 1470 times)

The economy of a country cannot be constant, there will always be an influence of time and season on the economy, moreso the economy encompasses different sectors, the only thing is could be under good regulation. A country does not have all , the process of exchange,import and export with other country for certain product will definitely have an influence in her economy. Those country you claim to have a rise and fall in their economy only have a wide range of regulation inefficiency.

A country's resources and how productively a country using it makes their economy stronger or weaker.More population will be a factor on national GDP'ss average loss but if a country has more work force then they can make everything possible like what China has been doing for the last ten or twenty years to become one of the super power of this world.

In my opinion, a country's economy and an individual's economy are not having big differences. I mean both are influenced by same set of factors hence to understand better about what are causing economy of a country to rise and fall, just studying how we are getting better financial status is more than enough. A man with regular job must be having well economic status compared to a service provider who is depending on demand and many other factors for getting opportunity to get work and to get wages.

Similarly, if a country is having their own production and having surplus products for exporting then definitely they will be having good economy. The countries who are all not having sufficient agricultural product are severely affected by economic crisis unless otherwise they are technically advanced or having some other products to export.

Earth's Flow is the cause of economic ups and downs. For example, the profit and trade of the common man is higher in the agricultural sector. In a word, the income of the common man increases and whenever the income of the common man increases, there will be more exchange. In this case it creates resources for our country.

But in this present situation, the economic condition of our Bangladesh is very bad because of Corona. Every thing from the country's business to jobs are being matched and even the agriculture sector is being affected. There is no business today, There is no good jobdue to which the whole thing has come to a standstill.

For this reason, now that Bangladesh Economy is collapsing, it will not be the same one day or another, no one can say exactly when it will be right.

true government policies are required to strive for the welfare of the people through economic policies that protect the people's economy. However, government policies do not always produce prosperity for the people, so there are times when the government is wrong in taking economic policies ..?
for example my knowledge ..?
- for example, importing excessive food, eliminating regulations related to environmental sustainability, eliminating luxury tax.
mistakes in taking economic policy will have an impact on the implementation of the wrong strategy as well. instead of achieving skyrocketing economic growth, it has actually declined

If we are talking about rise and fall of economy during this exact year - it depends heavily on two factors:
1. structure of economy (US economy is based on high liquidity thats why they can't afford being in quarantine anymore, Switzerland economy is way more passive so they didn't feel the same as US)
2. decisions of government (if one country doesn't want to start a lockdown because they don't feel it as necessity - they are going to lose a lot of people and wealth only because of their decision)
There are some governments who did right decisions, but people simply ignored them - thats whole another deal. It could only happen with developing country, so economy of such country is not as dependent of covid as other countries

The culture of bribery should not be contained in a pure free market, and a culture of bribery is not included in the free market support values. Bribery is giving anything to another party to get a decision in a bad way and will bear fruit in the economic and moral deterioration of individuals and nations. The economic problems of a country are often caused by human error, one of which is caused by acts of corruption and poor administration, where bribery is included. The act of bribery will cause a high-cost economy in the business world so that it is forced to raise the selling price at normal profit levels. Prices will experience distortion due to cost components that should not appear, so the selling price to consumers does not reflect the true value of the resources of the production process.

The existence of bribery costs results in an inefficient allocation of resources, and damages productivity levels. Until finally damage the economy in general and very detrimental to the wider community. The accumulation of a high-cost economy in the business world, the deteriorating economy, and the spread of crime in the business world and in various social strata of society will be felt by all citizens, both those involved in bribery or not. The nation's credibility has also fallen into the eyes of the international community, it can be seen from the ranking of the implementation of Good Corporate Governance (GCG) and the level of corruption that is widely made by various international institutions.

If there are those who neglect moral and ethical values in economic activities, they will automatically spread domino effects such as injustice, income inequality, damage to resources and the environment and damage to the economy in general, thus potentially resulting in various crimes both in the business world and society that will lead to the decline of human civilization.

Without a doubt this is a big problem, in a real free market economy businesses compete against each other evenly and the ones that are the best at managing their resources should be the winners, but we know this is not the case, governments can change the rules of the game in any way they want and they can benefit one company to the detriment of another one, this eventually creates an environment in which it does not matter how you run your company but who you can bribe and that is never good for the free market economy.

@kasabus I agreed with you that people work directly with government it will a big help to the country in order to elevate their economy.
The work is not base on government alone neither individuals,
Government will strategies in order to work with people so that their economy will remain constant.
Because without people no government and without government no rules and regulations in the country no individuals will work in  accordance with government. So both parties has to work hand in hand to activates their economy and make it to accelerating constantly.

There are many factors of each economy rise and recession. It's hard to name certain ones. I think that regulation policy matters the most.
A major cause is obviously evident in the real economic shock of the widespread disruption of global and domestic supply chains and direct damage to businesses across all industries, due to the Covid-19 epidemic and the public health response.

There are a lot of reason on the economic market movement or increasing and fall down of a single country, today we experience an unexpected event happens because of the pandemic outbreak which is the coronavirus and most of the country falls down their GDP or the gross domestic product which is common on the third world country if the country is base on trading like the import and export of the products it may affect a lot on this pandemic because of some of the country today prohibited going outside and make a mass gathering also if they stop the transport of the supplies many people getting affected.

Like here on the Philippines, most of the works and businesses came back because it is a huge loses on them if they don't bring the business because they don't have enough money and they do want to become dependent on the government we aim for the money to buy a lot of things to survive this pandemic outbreak and we are looking forward on it that they will make a cure immediately.

Factors that cause the economy rise and fall is the income generated by its population. Because the greater the income of the population,
the country will prosper. Because the country can get a big tax, so the economy can go up. Whereas if the population has a low income
and a high unemployment rate, the tax revenue generated by the state will be low too. Then no wonder if the economy falls.

Corruption is the biggest problem of our country but apart from corruption epidemics and conflicts are responsible for the rise and fall of the economy When these effects occur business trade production and everything else stops which hinders the economy. But the government is responsible for all this

I think at this time the international political and economic constellation is more determining the ups and downs of a country's economy. Because the world economic barometer is still the US due to the dominance of the dollar over world trade traffic. The movement of the economic hegemon and also the policies of countries with high trade flows such as China are increasingly narrowing the strategic choices that can be taken by developing countries and poor countries which incidentally have a high dependence on these countries.

Managing the country in the global arena is very complex and requires high analytical skills from officials in managing conflicts and managing natural resources and human resources in order to reduce dependence on other countries and can even make other countries depend on our country.

China is a smart country, although sometimes manipulative. During this time they are countries that have high energy dependency to finance their manufacturing, but with lobbying and its OBOR strategy in Southeast Asian countries, China is heading for an energy self-sufficient country by becoming the world's battery manufacturing center, and even many countries in Southeast Asia that control raw material for the battery industry it failed to capture the moment of even loss of profit and only became a place of exploitation because China has already created a system that ensures China hegemony the battery manufacturing up to its raw material hegemony.

I must agree. The people and the government should work hand in hand so that the economy of such country will prosper. Big factor of which is also the leadership of the officials in the government. If they are capable with their different posistions, they will be able to produce more projects for the economy which will be totally benefited also by the citizens living in it. More projects means more benefits for the people.

It can also stem from other countries' economies, as some countries are dependent on the other for some things, and if that certain country have a lackluster economy and cannot provide what the other country needs, the latter would also suffer. If you try and read the main causes for the rise and fall of economies, you can always see that it has something to do with huge banks or other countries doing business with the other and then failing miserably. But the volatility in a country's economy is not limited to what I've just said--it's a broad topic that requires lots of consideration into different forces at play in the stage.

This is quite a broad topic and you will need a lot of prior knowledge about how basic economics work.
No economy in the world is constant. The economy falls and rises,  but in the long run, every country expects to have a constant growth of the economy.
The economy can rise or fall due to various reason. A countries economy can start falling if a bad monetary or  fiscal policy takes place. Lets say the central bank decided to increase the interest rate (monetary policy) for any reason without proper analyzing the other parallel outcome. We will see that people started taking less loans from the bank, and those that have cash started to deposit more money to the bank. This will cause the aggregate demand to fall (due to people willing to spend less and save more), thus less production and then eventually fall of GDP (this is just an example. Usually monetary policies help to recover from downfall, but bad decisions have consequences). Now lets say a war is going on and the government decided to spend most of everything in military (fiscal policy), the countries economy will eventually fall.
Hope you now you understand how this works.

There cannot be just one or two factors to be assumed on influencing on a country's economy; it should be uncountable. But, what I feel is policy of a government got more degree on deciding the direction of economy. If the policies are supportive to generate more jobs and more production and also allowing easy and simple procedures for businesses to be started in corruption-free way then that country's economy could be built stronger over the time. When politicians are not supportive of creating jobs then that will end up in falling down of economy.

When governments proactively set policies on encouraging its people to start new business toward more exports after fulfilling their domestic needs then they will collect more foreign exchange reserves which must be one of the prime factor on deciding the value of one country's high money value. High money value is an enough measurement of stronger economy of a country.

The governments, the economy itself, and countries' economic status. And there are many other factors which can easily affect the economy, too, such as the COVID-19, the United States presidential election, etc..
In some countries, such as mine, the government controls everything, and therefore, its hard to make a big crash on the economy. However, it also blocks the country from going up rapidly.

Economic growth means there is an increase in national output and national income economic growth is caused by two main factors. Economy is measured by gross domestic product. That's the dollar value of everything produced in the last year. recession include high interest rates, reduced consumer confidence, and reduced real wages.