Recession
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The informal definition of a recession is two consecutive quarters of negative economic growth.[1] The National Bureau of Economic Research - a private organization of academic economists - is, however, the official arbiter of when recessions begin.[2]
The NBER designates the beginning of a recession months after it has started and designates its ending months (or sometimes years) after it has ended. According to NBER, a recession is "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough. Between trough and peak, the economy is in an expansion," the normal state of the economy.[3]
The NBER has reviewed historical and current economic data to designate 33 American economic recessions since 1854. The most recent one lasted from March 2001 through November 2001, but it wasn’t until November 2001 that the NBER pinpointed March 2001 as the beginning of the recession; and it wasn’t until July 2003 that it determined precisely when the recession had ended.[4]
Resources
- NBER List Of U.S. Business Cycle Expansions And Contractions
- RECESSION.ORG: 15 key economists, policymakers and strategists weigh in on the current volatility and economic turmoil
References
- ↑ The Great Recession of 2008?. The American. Retrieved on September 30, 2008.
- ↑ Recession Is Here, Economist Declares. Boston Globe. Retrieved on September 30, 2008.
- ↑ The NBER's Recession Dating Procedure. NBER. Retrieved on September 30, 2008.
- ↑ Business Cycle Dating Committee, National Bureau of Economic Research. NBER. Retrieved on September 30, 2008.
