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When we talk about economic stagnation as a general concept, it can be defined as the constant decline in the general level of prices, that is, the reversal of the economic axiom of inflation, which is the increase in the general level of prices over a specified period of time
The main reasons for the recession are the following
1) The economic stagnation imported through the presence of external shocks received by the economy through the decline of external demand for domestic products, or the drop of the tourist delegation to the country, or the rise in commodity prices
2) the occurrence of economic crises such as the mortgage crisis in the United States in 2007
3) Government deficit and increase in public debt
4) High interest rates through decisions taken in monetary policy
After identifying the main causes of the economic recession, which stem from the lack of liquidity in the market, which leads to contraction of the economic market and can address this economic problem by following the tools of fiscal policy through increased government spending through public borrowing or aid and grants in addition to reducing the tax rates , And the second therapeutic policy is the monetary policy that addresses the problem by reducing the interest rate by the Central Bank to increase the borrowing and production, which leads to increased start-up and increase economic growth through the increase in gross domestic product
