Economic Recession Period
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An Economic Recession Period is an economic contraction period that is a business cycle phase characterized by declining economic activity across multiple economic sectors.
- AKA: Recession, Economic Downturn, Economic Contraction, Business Cycle Contraction, Recessionary Period.
- Context:
- It can (typically) last between 6 and 18 months for normal recession cycles.
- It can (typically) reduce Gross Domestic Product by negative growth rates for consecutive quarters.
- It can (typically) increase Unemployment Rates through job loss and hiring freezes.
- It can (typically) decrease Consumer Spending due to reduced confidence and income uncertainty.
- It can (typically) contract Business Investment through credit tightening and demand reduction.
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- It can (often) trigger Government Stimulus Programs through fiscal policy interventions.
- It can (often) prompt Central Bank Actions via monetary policy adjustments.
- It can (often) cause Asset Price Declines in equity markets and real estate markets.
- It can (often) increase Business Bankruptcy Rates through revenue collapse.
- It can (often) reduce Inflation Rates through demand destruction.
- ...
- It can range from being a Mild Economic Recession to being a Severe Economic Recession to being an Economic Depression, depending on its recession severity measure.
- It can range from being a V-Shaped Recession to being a U-Shaped Recession to being an L-Shaped Recession, depending on its recession recovery pattern.
- It can range from being a Regional Recession to being a National Recession to being a Global Recession, depending on its recession geographic scope.
- It can range from being a Sector-Specific Recession to being a Broad-Based Recession, depending on its recession industry coverage.
- It can range from being a Demand-Driven Recession to being a Supply-Driven Recession, depending on its recession causal mechanism.
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- It can be triggered by Financial Crisis Events through credit market collapse.
- It can be caused by Economic Bubble Bursts through asset price corrections.
- It can be induced by Supply Shocks through cost push inflation.
- It can be precipitated by Demand Shocks through consumption collapse.
- It can be measured by Recession Indicators including GDP contraction, unemployment spikes, and industrial production declines.
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- Example(s):
- Global Economic Recessions, such as:
- Great Depression (1929-1939) demonstrating worldwide economic collapse with 25% unemployment rates.
- 1973-1975 Global Recession triggered by oil crisis and stagflation pressures.
- Early 1980s Global Recession caused by anti-inflation monetary policy and energy crisis.
- Early 1990s Global Recession following savings and loan crisis and Gulf War impacts.
- 2007-2009 Global Financial Crisis originating from subprime mortgage collapse and banking system failure.
- 2020 COVID-19 Recession induced by pandemic lockdowns and supply chain disruptions.
- U.S. Economic Recessions, such as:
- 1937-1938 U.S. Recession during Great Depression recovery showing double-dip pattern.
- 1953-1954 U.S. Recession following Korean War spending reduction.
- 1960-1961 U.S. Recession triggered by Federal Reserve tightening.
- 1969-1970 U.S. Recession caused by Vietnam War inflation and fiscal contraction.
- 1990-1991 U.S. Recession following savings and loan crisis.
- 2001 U.S. Recession after dot-com bubble burst and 9/11 attacks.
- Regional Economic Recessions, such as:
- 1997-1998 Asian Financial Crisis affecting East Asian economies.
- 2010-2013 European Debt Crisis impacting Eurozone member states.
- 1990s Japanese Lost Decade demonstrating prolonged economic stagnation.
- 2014-2016 Brazilian Recession showing commodity price collapse impacts.
- 2014-2017 Russian Recession from oil price decline and economic sanctions.
- Sector-Specific Recessions, such as:
- Historical Economic Recessions, such as:
- Long Depression (1873-1879) demonstrating 19th century global recession.
- Panic of 1907 showing banking crisis recession pattern.
- 1920-1921 Depression exhibiting sharp but brief contraction.
- ...
- Global Economic Recessions, such as:
- Counter-Example(s):
- Economic Expansion Period, which increases economic activity through positive growth rates rather than contraction.
- Economic Boom Period, which represents rapid economic growth with full employment rather than decline.
- Economic Recovery Period, which follows recession troughs with renewed growth rather than continued contraction.
- Economic Stagnation Period, which maintains zero growth without significant decline typical of recession.
- Stagflation Period, which combines inflation with slow growth rather than deflationary contraction.
- Economic Soft Landing, which achieves growth moderation without triggering recession.
- See: Business Cycle, Economic Depression, Economic Indicator, Unemployment Rate, GDP Growth Rate, Recession Indicator, Financial Crisis, Monetary Policy, Fiscal Policy, Economic Recovery, Capacity Utilization, Consumer Confidence Index, Leading Economic Indicator.
References
2014
- (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/recession Retrieved:2014-2-3.
- In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP(Gross Domestic Product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.
Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
- In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP(Gross Domestic Product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.