When this imbalance exists for a sustained period

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It may also lead companies to reduce their prices to maintain customers, adversely impacting their profit margins. A recession can also cause an increase in interest rates as central banks try to curb inflation and stabilize the currency by making agents pay more when they borrow funds. This makes borrowing money much more expensive for businesses, placing them at risk of bankruptcy if they are unable to cope with the debt burden.


In addition, a recession may lead companies to stop hiring new employees canadian cto cio email list or cut back on existing staff numbers as a way of reducing their costs; this could affect job security and put pressure on wages overall if skilled personnel become scarce in certain sectors due to downsizing or bankruptcies. Inflation Inflation is the rise in the price levels of goods and services in an economy over time, and it is often measured using the Consumer Price Index (CPI).


Inflation occurs when there is an increase in demand for products or services, but not enough supply to meet that increased demand. prices will inevitably rise as buyers are willing to pay more for those products or services. Factors such as rising economic growth, wage increases, stimulus spending measures such as government tax cuts, and higher levels of borrowing by private citizens can cause this increase in demand.