Recession
von Paul Droop
![Mind Map: Recession](https://www.mindmeister.com/image/xlarge/35065630/mind-map-recession.png)
1. Excess supply in labour market (unemployment)
1.1. falling real wages
1.1.1. real exchange rate depreciation
2. Asset price bubble
3. Excess demand in labour market
4. Excess demand in product/services markets
4.1. pro-cyclical incomes policy
4.2. pro-cyclical fiscal policy
4.3. pro-cyclical monetary policy
4.3.1. Euro membership
5. Increased foreign debt
5.1. currrent account deficit
5.1.1. increased household debt
5.1.2. real exchange rate appreciation