"Early 1990s recession in Australia The early 1990s recession saw a period of economic downturn affect much of the world in the late 1980s and early 1990s. The economy of Australia suffered its worst recession since the Great Depression. In October 1987, the international Stock Market Slump saw markets crash around the world. The crisis originated when Japan and West Germany pushed up interest rates, pressuring US rates also to rise, triggering a massive sell off of US shares. Global share prices fell an average of 25%, but Australia saw a 40% decline. 17 of the 18 major OECD economies"
"Recession In economics, a recession is a business cycle contraction when there 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. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters. 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"
"Economic collapse Economic collapse is any of a broad range of bad economic conditions, ranging from a severe, prolonged depression with high bankruptcy rates and high unemployment (such as the Great Depression of the 1930s), to a breakdown in normal commerce caused by hyperinflation (such as in Weimar Germany in the 1920s), or even an economically caused sharp rise in the death rate and perhaps even a decline in population (such as in countries of the former USSR in the 1990s). Often economic collapse is accompanied by social chaos, civil unrest and a breakdown of law and order. There are"
"recession as the period from a peak to a trough. The NBER identifies 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"". There is often a close timing relationship between the upper turning points of the business cycle, commodity prices and freight rates, which is shown to be particularly tight in the grand peak years of 1873, 1889, 1900 and 1912. Recent research employing spectral analysis has confirmed the presence of Kondratiev waves in the world GDP dynamics at an"
"Growth recession The term Growth Recession indicates a situation were growth is slow, but not low enough to be a technical recession, yet, unemployment increases since more jobs are lost than created. The term was created by Dr. Solomon Fabricant (New York University, National Bureau of Economic Research) and is recognized and cited more recently by business economists. Note that the term also has slightly different secondary meanings including a more general one that growth is below potential. However, the more specific meaning indicates the growth is weak and insufficient to provide jobs for those entering the labor market (see"
"Recession of 1958 The Recession of 1958, also known as the Eisenhower Recession, was a sharp worldwide economic downturn in 1958. The effect of the recession spread beyond United States borders to Europe and Canada, causing many businesses to shut down. It was the most significant recession during the post-World War II boom between 1945 and 1970 and had a sharp economic decline that only lasted eight months. By the time recovery began in May 1958, most lost ground had been regained. As 1958 ended, the economy was heading towards new high levels of employment and production. Overall, the recession"
"recessions of the last three decades, global per capita output growth was zero or negative. Global recession A global recession is recession that affects many countries around the world—that is, a period of global economic slowdown or declining economic output. The International Monetary Fund defines a global recession as ""a decline in annual percapita real World GDP (purchasing power parity weighted), backed up by a decline or worsening for one or more of the seven other global macroeconomic indicators: Industrial production, trade, capital flows, oil consumption, unemployment rate, percapita investment, and percapita consumption"". According to this definition, since World War"
"common shorthand definition of recession, which is ""a fall of a country's real gross domestic product in two or more successive quarters"", and has led to some confusion about the procedure for determining the starting and ending dates of a recession. The NBER's Business Cycle Dating Committee (BCDC) uses monthly, rather than quarterly, indicators to determine peaks and troughs in business activity, as can be seen by noting that starting and ending dates are given by month and year, not quarters. However, controversy over the precise dates of the recession led to the characterization of the recession as the ""Clinton"
"Balance sheet recession A ""balance sheet recession"" is a type of economic recession that occurs when high levels of private sector debt cause individuals or companies to collectively focus on saving by paying down debt rather than spending or investing, causing economic growth to slow or decline. The term is attributed to economist Richard Koo and is related to the debt deflation concept described by economist Irving Fisher. Recent examples include Japan's recession that began in 1990 and the U.S. recession of 2007-2009. A balance sheet recession is a particular type of recession driven by the high levels of private"
"Global recession A global recession is recession that affects many countries around the world—that is, a period of global economic slowdown or declining economic output. The International Monetary Fund defines a global recession as ""a decline in annual percapita real World GDP (purchasing power parity weighted), backed up by a decline or worsening for one or more of the seven other global macroeconomic indicators: Industrial production, trade, capital flows, oil consumption, unemployment rate, percapita investment, and percapita consumption"". According to this definition, since World War II there were only four global recessions (in 1975, 1982, 1991 and 2009), all of"
"Long Depression The Long Depression was a worldwide price and economic recession, beginning in 1873 and running either through the spring of 1879, or 1896, depending on the metrics used. It was the most severe in Europe and the United States, which had been experiencing strong economic growth fueled by the Second Industrial Revolution in the decade following the American Civil War. The episode was labeled the ""Great Depression"" at the time, and it held that designation until the Great Depression of the 1930s. Though a period of general deflation and a general contraction, it did not have the severe"
"Hard landing (economics) A hard landing in the business cycle or economic cycle, is an economy rapidly shifting from growth to slow-growth to flat as it approaches a recession, usually caused by government attempts to slow down inflation. It is distinguished from a ""soft landing"", in which an economy's growth rate slows enough to control inflation, but remains high enough to avoid recession. The criteria for distinguishing between a ""hard"" and ""soft"" landing are numerous and subjective. In the United States, modern recessions and hard and soft landings follow from Federal Reserve tightening cycles, in which the Federal funds rate"
"recession"". By this measure, there were six global recessions since 1970: 1974–75, 1980–83, 1990–93, 1998, 2001–02, and 2008–09. Informally, a national recession is a period of declining economic output. In a 1974 ""New York Times"" article, Julius Shiskin suggested several rules of thumb to identify a recession, which included two successive quarterly declines in gross domestic product (GDP), a measure of the nation's output. This two-quarter metric is now a commonly held definition of a recession. In the United States, the National Bureau of Economic Research (NBER) is regarded as the authority which identifies a recession and which takes into"
"Great Recession The Great Recession was a period of general economic decline observed in world markets during the late 2000s and early 2010s. The scale and timing of the recession varied from country to country. The International Monetary Fund concluded that the overall impact was the most severe since the Great Depression in the 1930s. The Great Recession stemmed from the collapse of the United States real-estate market, in relation to the financial crisis of 2007 to 2008 and U.S. subprime mortgage crisis of 2007 to 2009, though policies of other nations contributed also. According to the National Bureau of"
"a U.S. recession had begun. The collapse of Bear Stearns and the resulting financial market turbulence signaled that the crisis would not be mild and brief. Alan Greenspan, ex-Chairman of the Federal Reserve, stated in March 2008 that the 2008 financial crisis in the United States ""is likely to be judged in retrospect as the most wrenching since the end of World War II"". A chief economist at Standard & Poor's said in March 2008 he had projected a worst-case-scenario in which the country would endure a double-dip recession, in which the economy would briefly recover in the summer 2008,"
"including sovereign debt defaults, significantly reduced amounts of trade and commerce (especially international trade), as well as highly volatile relative currency value fluctuations (often due to currency devaluations). Price deflation, financial crises and bank failures are also common elements of a depression that do not normally occur during a recession. In the United States the National Bureau of Economic Research determines contractions and expansions in the business cycle, but does not declare depressions. Generally, periods labeled depressions are marked by a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced using"
"was called ""The Crash"", and the term ""panic"" has since fallen out of use. At the time of the Great Depression, the term ""The Great Depression"" was already used to refer to the period 1873–96 (in the United Kingdom), or more narrowly 1873–79 (in the United States), which has retroactively been renamed the Long Depression. Other economic downturns have been called a ""great depression"", but none had been as widespread, or lasted for so long. Various nations have experienced brief or extended periods of economic downturns, which were referred to as ""depressions"", but none have had such a widespread global"
"flight. Several currencies that formed part of the European Exchange Rate Mechanism suffered crises in 1992–93 and were forced to devalue or withdraw from the mechanism. Another round of currency crises took place in Asia in 1997–98. Many Latin American countries defaulted on their debt in the early 1980s. The 1998 Russian financial crisis resulted in a devaluation of the ruble and default on Russian government bonds. Negative GDP growth lasting two or more quarters is called a ""recession"". An especially prolonged or severe recession may be called a ""depression"", while a long period of slow but not necessarily negative"
"Rare disasters A rare disaster is an economic collapse that is infrequent and large in magnitude, having a negative effect on an economy. Rare disasters are important because they provide an explanation of the equity premium puzzle, the behavior of interest rates, and other economic phenomena. The parameters for a rare disaster are a substantial drop in GDP and at least a 10% decrease in consumption. Examples include financial disasters: the Great Depression and the 1997 Asian financial crisis; wars: World War I, World War II, and regional conflicts; epidemics: influenza outbreaks and the Asian Flu; weather events; and earthquakes"
"of indebtedness or the bursting of a real estate or financial asset price bubble can cause what is called a ""balance sheet recession."" This is when large numbers of consumers or corporations pay down debt (i.e., save) rather than spend or invest, which slows the economy. The term balance sheet derives from an accounting identity that holds that assets must always equal the sum of liabilities plus equity. If asset prices fall below the value of the debt incurred to purchase them, then the equity must be negative, meaning the consumer or corporation is insolvent. Economist Paul Krugman wrote in"
"Research (NBER) is generally seen as the authority for dating US recessions. The NBER defines an economic 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."" Almost universally, academics, economists, policy makers, and businesses defer to the determination by the NBER for the precise dating of a recession's onset and end. In the United Kingdom, recessions are generally defined as two consecutive quarters of negative economic growth, as measured by the seasonal adjusted quarter-on-quarter figures for real GDP,"
"dips in the business cycle that are either self-correcting or soon cured by modest fiscal or monetary stimulus. Because of the continuing deflationary trap, it would be more accurate to call this decade's stagnant economy The Lesser Depression or The Great Deflation."" The Great Recession met the IMF criteria for being a global recession only in the single calendar year 2009. That IMF definition requires a ""decline in annual real world GDP percapita "". Despite the fact that quarterly data are being used as recession definition criteria by all G20 members, representing 85% of the world GDP, the International Monetary"
"definitions of what Downturn conditions are. One definition is at least two consecutive quarters of negative growth in real GDP. Often, negative growth is also accompanied by a negative output gap in an economy (where potential production exceeds actual demand). The calculation of LGD (or Downturn LGD) poses significant challenges to modelers and practitioners. Final resolutions of defaults can take many years and final losses, and hence final LGD, cannot be calculated until all of this information is ripe. Furthermore, practitioners are of want of data since BIS II implementation is rather new and financial institutions may have only just"
"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 a 1974 ""The New York Times"" article, Commissioner of the Bureau of Labor Statistics Julius Shiskin suggested several rules of thumb for defining a recession, one of which was two down consecutive quarters of GDP. In time, the other rules of thumb were forgotten. Some economists prefer a definition of a 1.5-2 percentage points rise in unemployment within 12 months. In the United States, the Business Cycle Dating Committee of the National Bureau of Economic"
"to the abundance of historically black colleges in the state. In one study, the NBER was ranked as the second most influential domestic economic policy think tank (the first was the Brookings Institution). The NBER is well known for its start and end dates of US recessions. The NBER uses a broader definition of a recession than commonly appears in the media. A definition of a recession commonly used in the media is two consecutive quarters of a shrinking gross domestic product (GDP). In contrast, the NBER defines a recession as ""a significant decline in economic activity spread across the"
"action that restores confidence in the government can help end the hyperinflation (e.g. the psychological effect of food in the shops after shortages in most hyperinflations, the election of a new government both capable of and dedicated to tackling the problem). In the monetary model, the issuer of the currency must stop expanding the currency. A shock in economics is defined as an unexpected or unpredictable event that affects an economy, either positively or negatively. Recessions are often modelled as negative economic shocks in which the current state of the economy is untenable and the economy tries to restore itself"
"crash, the end of a massive consumption binge."" In his final press conference as president, George W. Bush claimed that in September 2008 his chief economic advisors had said that the economic situation could at some point become worse than the Great Depression. A tent city in Sacramento, California was described as ""images, hauntingly reminiscent of the iconic photos of the 1930s and the Great Depression"" and ""evocative Depression-era images."" The Austrian School of economics view is that the size of a bust is based, at least in part, on the size of the preceding credit boom. A check of"
"suffered far less impact, particularly China and India, whose economies grew substantially during this period. Two senses of the word ""recession"" exist: one sense referring broadly to ""a period of reduced economic activity"" and ongoing hardship; and the more precise sense used in economics, which is defined operationally, referring specifically to the contraction phase of a business cycle, with two or more consecutive quarters of GDP contraction. Under the academic definition, the recession ended in the United States in June or July 2009. Robert Kuttner argues, “’The Great Recession,’ is a misnomer. We should stop using it. Recessions are mild"
"current resources and technology (potential output). Another proposed definition of ""depression"" includes two general rules: There are also differences in the duration of depression across definitions. Some economists refer only to the period when economic activity is declining. The more common use, however, also encompasses the time until economic activity has returned close to normal levels. A recession is briefly defined as a period of declining economic activity spread across the economy (according to NBER). Under the first definition, each depression will always coincide with a recession, since the difference between a depression and a recession is the severity of"
"companies. The term ""Leprechaun economics"" was coined to describe this phenomenon. In 2017, the Anti-Austerity Alliance renamed itself Solidarity to shift its focus away from the economy. Post-2008 Irish economic downturn The post-2008 Irish economic downturn in the Republic of Ireland, coincided with a series of banking scandals, followed the 1990s and 2000s Celtic Tiger period of rapid real economic growth fuelled by foreign direct investment, a subsequent property bubble which rendered the real economy uncompetitive, and an expansion in bank lending in the early 2000s. An initial slowdown in economic growth amid the international financial crisis of 2007–08 greatly"
"of 1929]] served to punctuate the end of the previous era, as ""The Great Depression"" set in. The ""Great Depression"" was a worldwide economic [[Recession|downturn]] starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. It was the largest and most important [[Depression (economics)|economic depression]] in the 20th century, and is used in the 21st century as an example of how far the world's economy can fall. The depression had devastating effects in virtually every country, rich or poor. International trade plunged by half to two-thirds, as did personal income,"
"closing of the frontier and the collapse of immigration"". Warnings similar to secular stagnation theory have been issued after all deep recessions, but they usually turned out to be wrong because they underestimated the potential of existing technologies. Secular stagnation refers to ""a condition of negligible or no economic growth in a market-based economy"". In this context, the term ""secular"" is used in contrast to ""cyclical"" or ""short-term"", and suggests a change of fundamental dynamics which would play out only in its own time. Alan Sweezy described the difference: ""But, whereas business-cycle theory treats depression as a temporary, though recurring,"
"downturn, banks are likely to significantly cut back lending and other risky ventures. This further hurts the economy, creating a vicious cycle and potentially turning a mild recession into a major depression. Economist Brad DeLong, who had previously advocated his own theory for the Great Depression, notes that the current financial crisis has raised the pertinence of Bernanke's theory. In 2002, following coverage of concerns about deflation in the business news, Bernanke gave a speech about the topic. In that speech, he mentioned that the government in a fiat money system owns the physical means of creating money and to"