Managerial Optimism to overcome Economic Recession in the World

Abstract

The current paper attempts to introduce new managerial strategies to overcome economic recession without evolving the economy into depression. The employment level and aggregate demand are often used as measurements for the performance of economic activity. However, factors contributing to the aggregate demand should be given more attention. For instance, shifting manufacturing goods to manufacturing services would be a new opportunity of growth for the country to prevail over economic recession. In the present paper, the traditional business cycle model is used as a base and it is then transformed to compare with the new optimistic managerial model. It is evident from the new model that managerial strategies such as need for diversification, scope for new opportunity, paradigm shift, appropriate space creation and effective corporate governance may be considered as quick remedial measures to overcome economic recession.