14 Facts About Economic recession

In economics, a recession is a business cycle contraction when there is a general decline in economic activity.

The Bureau of Economic Analysis, an independent federal agency that provides official macroeconomic and industry statistics, says "the often-cited identification of a recession with two consecutive quarters of negative GDP growth is not an official designation" and that instead, "The designation of a recession is the province of a committee of experts at the National Bureau of Economic Research".

Severe or prolonged recession is referred to as an economic depression, although some argue that their causes and cures can be different.

Economic recession argued that monetary policy was ineffective because there was limited demand for funds while firms paid down their liabilities.

July 2012 survey of balance sheet Economic recession research reported that consumer demand and employment are affected by household leverage levels.

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The Economic recession, in turn, deepened the credit crunch as demand and employment fell, and credit losses of financial institutions surged.

Strategies favored for moving an economy out of a recession vary depending on which economic school the policymakers follow.

Economic recession asserts that with positive interest rates a labor tax cut is expansionary, per the established literature, but at zero interest rates, it reverses and tax cuts become contractionary.

Example, the 1981 Economic recession is thought to have been caused by the tight-money policy adopted by Paul Volcker, chairman of the Federal Reserve Board, before Ronald Reagan took office.

Economic recession hit by the middle of the year 1974, with no change in policy enacted by the government as a measure to counter the economic situation of the country.

The Economic recession was not limited to the United States, but it affected partnering nations such as Australia.

The Economic recession deepened during the final quarter of the year, with the French, German and Italian economies all affected.

In July 2022, the NBER released a statement regarding declaring a Economic recession following a second consecutive quarter of shrinking GDP, "There is no fixed rule about what measures contribute information to the process or how they are weighted in our decisions".

December 2008 report from the National Bureau of Economic Research stated that the U S had been in a recession since December 2007, when economic activity peaked, based on several measures including job losses, declines in personal income, and declines in real GDP.