• Dr. Madhu Nagar

The world went through a period of economic recession in the early 1990s which affected most part of the western world.1 The NBER's Business Cycle Dating Committee defines a recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough."2 The major force behind this was the restrictive monetary policy and the workings of the business cycle. The major rise of recession was in October, 1987 when market crash around the whole world was seen due to Stock Market Slump. The pushing of the interest rates by Japan and West Germany gave rise to the US to increase the rates which led to a huge sell off of shares of the USA. The recession was experienced by 17 of the 18 major OECD economies.3The coming of recession was in two waves with the United States, the United Kingdom, Canada, Australia, New Zealand, Finland and Sweden, going into recession in 1990, 1 NBER BUREAU OF ECONOMIC RESEARCH, https://www.nber.org/March91.html(last visited January 5, 2018). 2 Stijn Claessens and M. Ayhan Kose, What is a Recession, INTERNATIONAL MONETARY FUND(January 5, 2018, 9:29 PM), https://www.imf.org/external/pubs/ft/fandd/2009/03/basics.htm. 3Id.

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"Early 1990s Recession: A Critical Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 5, page no.1539-1546, May 2018, Available :http://www.jetir.org/papers/JETIR1805990.pdf

"Early 1990s Recession: A Critical Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 5, page no. pp1539-1546, May 2018, Available at : http://www.jetir.org/papers/JETIR1805990.pdf