What is a recession and how long does it last?



What is a recession and how long does it last?

A more modern definition of a recession that’s used by the National Bureau of Economic Research (NBER) Dating Committee, the group entrusted to call the start and end dates of a recession, is "a significant decline in economic activity spread across the economy, lasting more than a few months." 4 

What is the most important factor that causes recessions?

In many cases, the most important single factor is a period of expansionary monetary policy in the years prior to the recession, sometimes to help fund government war spending or in an attempt to re-inflate the economy after the previous round of recession.

How long did the Great Recession of 1948-49 last?

This 11-month recession began in November 1948. It lasted until October 1949, when unemployment reached a peak of 7.9%. It was a mild adjustment as the economy continued adapting to peacetime production.

What is the history of US recessions?

The history of recessions in the United States since the Great Depression show they are a natural, though painful, part of the business cycle. The National Bureau of Economic Research defines when a recession starts.