Why Do Recessions Last a Long Time?
See also: How Long Do Recessions last?
A recession is a period of negative economic growth for 2 consecutive quarters. There are fears that the US economy is heading towards recession in either 2007 or 2008. See: US economy Recession?
There are various factors that determine the length of a recession. These include:
A recession is a period of negative economic growth for 2 consecutive quarters. There are fears that the US economy is heading towards recession in either 2007 or 2008. See: US economy Recession?
There are various factors that determine the length of a recession. These include:
- Effectiveness of Monetary and Fiscal Policy
- Effect on Consumer Confidence
- Response of the Government.
- What Causes Recession, is it Demand side shock, supply side shock, or a combination of both.
- How flexible are Labour Markets?
- Will increased Government spending lead to crowding out.
Perma Link | By: T Pettinger |
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1 Comments:
On average, a recession lasted about 10 months. The longest recession was the '74 recession. It lasted a total of 16 months. That recession was a global recession triggered by the Arab-Israeli war and the ensuing Arab Oil Embargo. The shortest recession was the '80 recession which lasted for only 6 months. I did a study of recessions and stock market performance since 1950. I posted the study on my blog The Investment Scientist.
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