How recession occurs:

In 1985 Australia introduced Capital Gains Tax legislation for the first ever time to tax capital gains on assets bought from 19th Sept 1985.

All those assets bought before were not caught by legislation. So many investors decided to leave the country, selling their investments and taking the money elsewhere to escape Australia taxing their gains.

This caused a serious recession in that period.

Other causes for recession:

ABC Bank Ltd lends money Tony's relatives and friends, without following the rules & regulations (after all they are created by Tony and his 6 friends/relatives).

After few episodes of prompt repayment, the borrower will borrow much larger sum.

The borrower will default in repayment, take all the money to another country.

This borrower will start a bank in another country. He will start a bank in another country as Tony does in ABC Bank Ltd.

This way Tony and his friends become more in number and become a rich group.

Once they take their money and leave the country, the country suffers recession.

One day Tony will dispose all his investments and leave the country with his money.

The market will face more supply of properties than demand. The property prices will go down. Not many can afford to buy what was possible for Tony to buy (as people with income like Tony are few).

Recession; this is because suddenly a big volume of money disappeared from the economy. So the government revenue decreases. The government will be bound to cut the funds for various activities in the economy, leading to job cuts.

The countries that are dependent up on this country, in recession, has chain reaction.