Business
Expert Warns FG Against Another Recession
A management consultant, Dr. John Imo has urged the Federal Government to put all economic strategy in place to avert further recession in the country.
Dr. John Imo who gave the charge in Port Harcourt in a statement made available to The Tide, described recession as a general slowdown in economic activities over a period of time leading to failure of key businesses, decline in consumer wealth, substantial financial commitment incurred by the government and a higher rate of decline in economic activities.
He said that most mainstream economists believed that recessions were caused by inadequate aggregate demand in the economy and as such governments usually respond to recession by adopting expansionary macroeconomic policies, which include increasing money supply, increasing government spending and decreasing taxation.
He said that, the strategies adopted to move an economy out of recession depend on the economic school the policy makers believed in.
According to him, monetarist economists would favour the use of expansionary monetary policy, Keynesian economists would advocate increased government spending, supply side economists may suggest tax cut so as to promote capital investment, while Laisez-Faire economists may simply recommend that nobody should interfere with the market forces of demand and supply.
Dr. Imo enjoined the Federal Government to be pro-active in making policies that would blouy the economy from the effect of the global economic crises, saying that Nigeria was not immuned to whatever that is happening in the other countries economies.