Recessions
in sentence
327 examples of Recessions in a sentence
This requires ensuring the credibility and transparency of the accounting rules that define budget deficits and public debt, with closer monitoring also focusing on the development of asset bubbles, which cause deep
recessions
– and thus sharp increases in budget deficits – when they burst.
The fact that inflation has increased in many Western countries, despite the severe
recessions
of recent years, could mean that financial markets have begun to account for this fundamental shift.
Since 2010, annual GDP growth has averaged about 2.1%, less than half the average of recoveries from previous US
recessions
over the last 60 years.
Given deleveraging from high private and public debts, unconventional monetary policies could prevent severe
recessions
and outright deflation; but they could not bring about robust growth and 2% inflation.
Overall, after almost 25 years of stunning prosperity, punctuated by only two mild recessions, most Americans feel pretty confident about their economic situation.
Economists usually joke that the stock market has predicted 12 out of the last nine recessions, as markets often fall sharply without an ensuing recession.
The first problem is that for certain types of economic phenomena – such as financial recessions, stock-market crashes, or exchange-rate fluctuations – it is logically impossible for anyone to be known to be forecasting accurately far in advance.
In the past, the Fed has moderated
recessions
by cutting short-term interest rates by around 500 basis points.
Moreover, the data from early 2015 suggest that urban hiring remains near the impressive pace of recent years – hardly the labor-market stress normally associated with economic hard landings or
recessions.
Moreover, the deterioration was predictable: history shows that the real stock of government debt explodes in the wake of
recessions
caused by financial crises.
During recessions, investor opinion is dominated by long-term anxieties about debt burdens, aging, and weak productivity growth, as has been true in the period since 2008.
Today’s brave new world of financial globalization will almost surely face severe new stress tests, reminding us that
recessions
still happen.
Recessions
typically are defined by whether GDP has fallen .
After mild and relatively short-lived
recessions
in 2009, the region’s economies recovered strongly in 2010.
After all, the Fed does not forecast recessions, and the International Monetary Fund usually does not issue public pronouncements on a country’s odds of default.
In fact, this is the worst job recovery after any of America's nine postwar
recessions.
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.
Sometimes, strong recoveries follow recessions, but recovery following financial crises is always immensely painful, time-consuming, and traumatic.
And the right way to prevent financial crises in the first place is to intervene in the financial markets to moderate swings in asset values and to head off
recessions
before they happen.
Public-sector cutbacks today do not solve the problem of yesterday’s profligacy; they simply push economies into deeper
recessions.
Owing to this adverse balance-sheet effect, devaluation turned out to be contractionary, leading to severe
recessions.
Severe unrest in the Middle East has historically been a source of oil-price spikes, which in turn have triggered three of the last five global
recessions.
Yet requiring deep fiscal cuts, privatization, and other structural reforms of the type that Greece has had to undertake risks greater unemployment and deeper
recessions.
Recovery from deep
recessions
is usually strong – the American economy recovered from the two other deep post-World War II
recessions
with annual real growth over 6% for three years.
While leverage normally becomes scarce and expensive during recessions, this time declining confidence in sovereign debt also has increased the cost of capital.
Government borrowing costs, which anchor banks’ own funding, normally fall during
recessions.
If the chances of a recession starting during a Democratic or a Republican president’s term were equal, the odds of four successive
recessions
beginning under Republicans would be 16 to one – the same as getting “heads” on four out of four coin-flips.
There is only a 100-to-one chance that nine out of the last ten
recessions
would have begun under Republican presidents.
Yes, the New Economy is delivering big increases in US productivity; no, the New Economy has not ended economic slowdowns or
recessions.
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