Few economic terms can match the anxiety caused by the word recession. Yet, there’s often a lot of uncertainty surrounding what, exactly, it is. Formally, a recession is a period of decline in economic activity, often defined by a continuous decline in gross domestic product (GDP) for two...
Today, we know that recessions are caused by imbalances in the market. While we can’t know when the next recession will come, or how much value will be shed, it’s pretty much guaranteed that another recession will come around sooner or later. ...
, In 2021 and 2022, the global auto industry became an asset bubble, caused by a spike in consumer demand and an international chip shortage during the COVID-19 pandemic. When a critical economic sector (such as housing) grows to a bubble, the inevitable pop can lead to a recession....
The recession started with a financial panic in 1873 with the failure of Jay Cooke & Company, a major bank. The event caused a chain reaction of bank failures across the country and the collapse of a bubble in railroad stocks. The New York Stock Exchange shut down for 10 days in response...
U.S. Bureau of Labor Statistics, Unemployment Rate [UNRATE], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/UNRATE, December 8, 2022. The impact of a severe recession can take years to overcome. As we learned fromthe Great Depression, entire ...
Stagflation is generally considered more difficult to resolve than standard inflation or a recession. This is because the typical policy responses to fight one problem tend to worsen the other. For example, raising interest rates to combat inflation can slow economic growth and increase unemployment,...
shows that long-lasting periods of inflation are caused in large part by what’s known as aneasy monetary policy. In other words, when a country’s central bank sets the interest rate too low or increases money growth too rapidly, inflation goes up. As a result,your dollar (or whatever ...
WASHINGTON, March 23 (Xinhua) -- The United States could see a recession if rapidly rising oil prices hit a crucial tipping point, economists have warned. Oil prices are surging worldwide, and the conflict in Ukraine has exacerbated numerous factors that have already caused record price hikes,...
These exchanges dominate crypto trading, but some have restrictions. Jeff ReevesMay 8, 2025 Should You Go to Cash? Why holding too much cash could backfire, and how staying invested beats market timing over the long term. Kate StalterMay 8, 2025 ...
Meanwhile, U.S. economic policies could have significant spillover effect on the world economy. There is widespread concern in the international community about the possibility of a recession in the United States. Over the years, the United States has kept saying that it does not seek conflict ...