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Recession in sentence

2506 examples of Recession in a sentence

But, as the recession hit, and the cost of the bailout became apparent, he indicated that he might have to postpone implementing this commitment.
The Government Debt BombSTANFORD – As economies around the world return to growth after the deepest recession in a generation, renewed attention is being paid to enormous fiscal deficits and vast expansions of government debt.
This year’s projected deficits (as a share of GDP) are estimated to be a remarkable 13.5% for the United States, twice the previous record at the depth of the horrific early 1980’s recession.
In addition to the automatic decline in tax revenues and increase in social-welfare spending during a recession, many nations added large spending increases and/or tax cuts to try to stimulate their economies.
Discretionary fiscal policy is often clumsy in responding to recession, given the usual lags in legislative and administrative implementation and the politics of pork and special interests surrounding spending and tax decisions.
Indeed, most of the stimulus money will be spent after the recession “appears to have ended,” and the evidence is that so far it has had little effect.
The Debt DelusionWASHINGTON, DC -- A second big American interest-rate cut in a fortnight, alongside an economic stimulus plan that united Republicans and Democrats, demonstrates that US policymakers are keen to head off a recession that looks like the consequence of rising mortgage defaults and falling home prices.
In effect, the new cycle locks the Fed into an unstable stance whereby it must prevent asset price declines to avert recession, yet must also promote asset bubbles to sustain expansions.
So, even if the Fed and US Treasury now manage to stave off recession, what will fuel future growth?
The 2010 program committed Greece to turn a primary fiscal deficit (excluding debt service) of 5% of GDP into a 6% surplus; but the austerity needed to deliver that consolidation produced a deep recession and a rising debt ratio.
In fact, fiscal tightening on anything like this scale would produce a deep recession, increasing the debt ratio.
The 1981 tax cuts went into effect at the onset of the 1981-1982 recession, a time when some short-term fiscal stimulus came in handy.
Instead, the German economy has barely grown; indeed, weaker world trade threatens to put it in recession.
It is impossible to predict when such a plunge will occur, or whether it will coincide with the next recession.
Unless its monetary policy really changes, both America and Japan could fall into recession simultaneously, with risks for all the world.
Still, all of these central banks will have to reintroduce unconventional monetary policies if another recession or financial crisis occurs.
When the global financial crisis and ensuing recession hit in 2007-2009, the Fed cut its policy rate from 5.25% to 0%.
As the last few monetary-policy cycles have shown, even if the Fed can get the equilibrium rate back to 3% before the next recession hits, it still will not have enough room to maneuver effectively.
The Fed and other central banks are informally exploring this option now, because it could increase the equilibrium interest rate to 5-6%, and reduce the risk of hitting the zero lower bound in another recession.
Ultimately, when the next recession strikes, central banks in advanced economies will have no choice but to plumb the zero lower bound once again while they choose among four unappealing options.
A deep recession is inevitable and the possibility of a depression cannot be ruled out.
The government would be forced to reduce spending, including on the military, throwing the economy into recession and eroding Venice’s international influence.
Unemployment is surging in many countries, even though we can detect the first signs of recovery from the recession.
By 2009, the US budget deficit had climbed to more than 10% of GDP, thanks to increased expenditures and plummeting tax revenues during the recession.
The Shape of America’s RecessionNEW YORK – Now that it is clear that the United States is in recession, the debate has moved on to whether it will be short and shallow or long and deep – a question that is as important for the rest of the world as it is for the US.
The answer depends on the shape of the US recession: if it is short and shallow, sufficient growth elsewhere will ensure only a slight global slowdown.
But if the US recession is long and severe, the result could be outright recession in some countries (the United Kingdom, Spain, Ireland, Italy, and Japan), and even financial crises in vulnerable emerging-market economies.
In principle, the US recession could end up being shaped like a V, U, W, or L. Which of these four scenarios is most likely?
The current consensus is that the recession will be V-shaped – short and shallow – and thus similar to the US recessions in 1990-91 and 2001, which lasted eight months each.
I expect a longer and deeper U-shaped recession, lasting at least 12 months and possibly as long as 18 months – one of the most severe US recessions in decades – because today’s macroeconomic and financial conditions are far worse.
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