Careless talk costs lives
30 March 2020 | by Peter Warburton
The correct use of language may not appear to be a priority in our straitened circumstances, but the misuse of technical terms has a capacity to spread confusion and misunderstanding. This, in turn, leads to poor decision-making and financial loss. One of the popular descriptions of the crisis that engulfed us in 2007-09 is the Great Recession, but it was nothing of the sort. Recession is the name we give to the negative phase of a trade or business cycle. This is to be distinguished from a depression, which is the technical description of the negative phase of a credit cycle. Depressions and recessions are as different as migraines and headaches. The challenge before us, once more, is to stave off a depression.