There is no right or wrong answer as to how to fix a recession. Just like a mechanic uses a a fixed set of tools to fix cars, economies count on a set of policies to redirect economies. The way in which these tools are used will vary case-by-case and will depend on the weaknesses of economies at different times.
Closing thoughts
To conclude, a recession happens when economic output is decreasing over a sustained period of time. More specifically, when GDP is decreasing over two consecutive quarters of a year. These recessions can be triggered by a combination of economic factors (e.g., economic shocks including wars or pandemics), financial (e.g., banking overlending or underlending) and psychological triggers (e.g., a decrease in consumer confidence), decreasing production, consumer spending and employment in economies. The Great Recession of 2008 is the most studied and significant example of a recession in recent history. The international expansion of the crisis pushed countries all over the world to react using different policy combinations to bring in the subsequent period of economic recovery and growth. It is noteworthy remembering that even though there are a set of go-to policies to fix economic recessions, it is close to impossible to find a single right answer as to how to address them. Indeed, like people, recessions are unique depending on their social, political and economic context; what works for some will not necessarily work for others.
Further reading on Perlego
To read more about oil price shocks, read The Squeeze by Tom Bower
To read a summary of all the happenings, consequences and policy making during the Great Recession of 2008, read The Great Recession by 50 Minutes
To read more about the housing bubble in 2008, read The Great American Housing Bubble: What Went Wrong and How We Can Protect Ourselves in the Future by Adam J. Levitin, Susan M. Wachter
To read more about the history of recessions, read Great Recession, The: History, Ideology, Hubris And Nemesis by Michael Siam-Heng Heng
To read more about how businesses should react to global recessions, read Global Recession: The Insights You Need from Harvard Business Review by Harvard Business Review
To read more about general microeconomics and macroeconomics, read the all-time best seller Freakonomics by Steven D. Levitt, Stephen J. Dubner