Recessions
in sentence
327 examples of Recessions in a sentence
What causes
recessions?
So it helps to start with the big picture:
recessions
occur when there is a negative disruption to the balance between supply and demand.
But some
recessions
occur in times of economic prosperity— possibly even because of economic prosperity.
Even policy designed to help prevent
recessions
can contribute.
Modern markets are more complex, making today’s
recessions
far more difficult to navigate.
But each recession provides new data to help anticipate and respond to future
recessions
more effectively.
I mean this went through thick and thin, through war and peace, through boom times and
recessions.
Most
recessions
in the United States have been relatively short and shallow, with durations of less than a year between the beginning of the downturn and the date when the recovery begins.
The faster and more robust recoveries that characterized most previous
recessions
reflected aggressive countercyclical monetary policy by the Fed, which cut the short-term interest rate very sharply.
From the trough of recessions, recovery to pre-recession output levels took less than two quarters on average, and employment recovered within eight months.
But the recoveries from the
recessions
of 1991 and 2001 were different.
Greece is still barely growing, after experiencing one of the worst
recessions
in history, although those who blame this on German austerity clearly have not looked at the numbers: with encouragement from left-leaning US economists, Greece mismanaged perhaps the softest bailout package in modern history.
Of course, there is two-way feedback between debt and growth, but normal
recessions
last only a year and cannot explain a two-decade period of malaise.
According to this view, austerity is counter-productive, because it induces slowdowns and
recessions
that make long-term fiscal consolidation more difficult.
And what is important to bear in mind is that the slowdown in China and the deep
recessions
in the Russian Federation and Brazil only explain part of the broad falloff in growth.
Discretionary consumption is typically deferred during recessions, especially for long-lasting durable goods such as motor vehicles, furniture, and appliances.
Economic stagnation in many European countries accompanies the prospect of double-dip
recessions
in others (leaving aside the unfolding disaster on the periphery).
Even so, our labor market performed far better than in previous recessions, with record numbers of people remaining in work.
As they come out of their cyclical recessions, incomes will rise, leading to increased imports and even larger current-account deficits.
Unless we start discussing economics in a Keynesian framework, we are doomed to a succession of crises and
recessions.
Some argue forcefully that high levels of inequality can make sustained growth impossible, and may even contribute to
recessions.
From 1960 until 1991, recoveries from
recessions
in the US were typically rapid.
The recoveries from the
recessions
of 1991 and 2001 were very different.
Some economists argue that, unlike past recessions, in which workers were temporarily laid off from an industry only to be rehired as the recovery picked up, job losses starting in 1991 were more permanent.
Regardless of what the right explanation is, the history of recent
recessions
suggests that we should not be surprised that the job recovery is taking time.
Unfortunately, gold bugs seem surprisingly – or perhaps willfully – ignorant of the chronic financial crises and deep
recessions
of that era.
Thus, a growing proportion of the workforce – often below the radar screen of official statistics – is losing hope of finding gainful employment, while the unemployment rate (especially for poor, unskilled workers) will remain high for a much longer period of time than in previous
recessions.
To be sure, large deficits can be benign or even desirable during
recessions
and wars, or when used to finance productive public investments; and in a deep, long-lasting downturn, with interest rates at or near zero, a well-timed, sensible fiscal response can theoretically help in the short term.
Governments must invest in transport and communication networks; counteract asymmetric information, externalities, and unequal bargaining power; moderate financial panics and recessions; and respond to popular demands for safety nets and social insurance.
When the crisis erupted, many hoped for a V-shaped recovery, notwithstanding a substantial body of research showing that recoveries from
recessions
caused by a financial crisis tend to be weaker and slower than recoveries from “normal”
recessions.
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