Recession (economics): Difference between revisions

From Citizendium
Jump to navigation Jump to search
imported>Nick Gardner
No edit summary
imported>Nick Gardner
Line 2: Line 2:


==Terminology==
==Terminology==
 
The terms '''recession''' and depression are used colloqually  to describe any deep or persistant decline in economic activity, and sometimes to a persistant reduction in the rate of growth of ouput. More precise definitions have been adopted the statistics authorities. In the United States the National Bureau of Economic Research defines a recession as
In economics usage, the term '''recession''' is conventionally defined (except in official pronouncements by the United States government) as two consecutive quarters of negative growth of [[gross domestic product]] (GDP). In the United States, the official designation of an economic situation as a recession is the responsibility of the National Bureau of Economic Research
:''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''<ref>[http://faq.bea.gov/cgi-bin/bea.cfg/php/enduser/std_adp.php?p_faqid=485&p_created=1206966790&p_sid=-OCpNEgj&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD0zODMsMzgzJnBfcHJvZHM9JnBfY2F0cz0mcF9wdj0mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MQ**&p_li=&p_topview=1 ''Recession: how is that defined?'', Bureau of Economics, US Department of Commerce]</ref><ref>[http://www.clevelandfed.org/research/trends/2008/1108/01ecoact.cfm For a further explanation and some examples  see ''What Is a Recession And Are We In One? Federal Reserve Bank  of Cleveland October 2008]</ref><br>
<ref>[http://faq.bea.gov/cgi-bin/bea.cfg/php/enduser/std_adp.php?p_faqid=485&p_created=1206966790&p_sid=-OCpNEgj&p_accessibility=0&p_redirect=&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD0zODMsMzgzJnBfcHJvZHM9JnBfY2F0cz0mcF9wdj0mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MQ**&p_li=&p_topview=1 ''Recession: how is that defined?'', Bureau of Economics, US Department of Commerce]</ref>, who  define a recession as "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" <ref>[http://www.clevelandfed.org/research/trends/2008/1108/01ecoact.cfm For a further explanation and some examples  see ''What Is a Recession And Are We In One? Federal Reserve Bank  of Cleveland October 2008]</ref>.
Other  authorities have usually defined it as
 
: a period of of negative growth of GDP lasting for at least two quarters<br>
Before 1930, what are now termed recessions were referred to as "depressions". That term is nowadays  reserved for exceptionally severe or prolonged recessions <ref>It has been suggested that the term depression is conventionally applied to a decline in real GDP that exceeds 10%, or one that lasts more than three years. [http://www.economist.com/finance/economicsfocus/displaystory.cfm?story_id=12852043]</ref>.
Before 1930, what are now termed recessions were referred to as "depressions". That term is nowadays  reserved for exceptionally severe or prolonged recessions. It has been suggested that the term depression is conventionally applied to a decline in real GDP that exceeds 10%, or one that lasts more than three years<ref>[http://www.economist.com/finance/economicsfocus/displaystory.cfm?story_id=12852043]</ref>.


==The causes of recessions==
==The causes of recessions==

Revision as of 01:52, 10 August 2010

This article is a stub and thus not approved.
Main Article
Discussion
Related Articles  [?]
Bibliography  [?]
External Links  [?]
Citable Version  [?]
Tutorials [?]
 
This editable Main Article is under development and subject to a disclaimer.

Terminology

The terms recession and depression are used colloqually to describe any deep or persistant decline in economic activity, and sometimes to a persistant reduction in the rate of growth of ouput. More precise definitions have been adopted the statistics authorities. In the United States the National Bureau of Economic Research defines a recession as

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[1][2]

Other authorities have usually defined it as

a period of of negative growth of GDP lasting for at least two quarters

Before 1930, what are now termed recessions were referred to as "depressions". That term is nowadays reserved for exceptionally severe or prolonged recessions. It has been suggested that the term depression is conventionally applied to a decline in real GDP that exceeds 10%, or one that lasts more than three years[3].

The causes of recessions

What happens in a recession

The treatment of recessions

The costs of recessions