The next recession will not be caused by housing or the sectors that generated previous recessions.It will be caused by the assets that we perceive as having lowest risk. With $9.5 trillion in negative-yielding bonds, we as economists need to start paying attention to the ramifications of a ...
[9] As a result, the fundamental trends in the 2020s and 2030s are for bigger government but still-low real interest rates. For central banks this creates an acute dilemma. In order to get inflation down to their targets of roughly 2% they may have to tighten enough to cause a recessi...
In this McKinsey Explainer, we look at what a recession is, their impact on the global economy, and what can be done to mitigate their impact.
[9] As a result, the fundamental trends in the 2020s and 2030s are for bigger government but still-low real interest rates. For central banks this creates an acute dilemma. In order to get inflation down to their targets of roughly 2% they may have to tighten enough to cause a recessi...
The recession of 1937-38 is sometimes called “the recession within the Depression.” It came at a time when the recovery from the Great Depression was far from complete and the unemployment rate was still very high. In fact, it was a disastrous setback to the recovery. Real GDP fell 11...
The bottom line, however, is that recessions a a fact of life. As highly unpleasant as they may be, they are inevitable occurrences in any dynamic economy. And if you're prepared for the next recession, there will be plenty of opportunities when that downturn ends. Thus, the more you kn...
"We are in a place where things have slowed. So, we're not in contraction territory. That frankly is not good enough, we can do better than avoiding a recession," Sahm told CNBC's "The Exchange." "What is very worrisome and today's employment report underscored, is the direction of ...
A recession is defined as a significant economic decline, usually lasting a few months. Here's what happens during a recession and how you can prepare for one.
During a recession, a government may run a deficit intentionally by decreasing its sources of revenue, such as taxes, while maintaining or even increasing expenditures—on infrastructure, for example—to provide jobs and income. The theory is that these measures will boost the public's purchasing ...
While unemployment is an important recession indicator, it’s also important to remember that unemployment usually peaks long after the recession has begun and can last well intorecovery. That’s because the NBER (and others) say a recession is over when the economiccontractionhits bottom and star...