Sample Thesis Paper

The question arise that why recession occurs, the answer to the question have been provided by two main schools of thoughts that is the monetary economist and the Keynesian economist. The monetary economist or more famously known as the neo classical economist believes that large decrease in the money supply usually results in recession.

The explanation given in this regard is that unexpected and sudden decline in the money supply will decrease the spending power of the public and hence resulting in recession. On the other hand the neo-Keynes economist believes that when there is a tendency in people to save more than consumption spending the result would be a decrease in total spending and the economy wouldn’t have funds to circulate in the market and hence recession would occur (Wessels 2006).

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