Recession

economic recessioneconomic downturndepressionrecessionseconomic slowdowndownturnslumpeconomic contractioneconomic depressioncontraction
In economics, a recession is a business cycle contraction when there is a general decline in economic activity.wikipedia
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Business cycle

economic boomboomboom and bust
In economics, a recession is a business cycle contraction when there is a general decline in economic activity.
These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms) and periods of relative stagnation or decline (contractions or recessions).

Financial crisis

economic crisisfinancial criseseconomic crises
This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble.
In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics.

National Bureau of Economic Research

NBERThe National Bureau of Economic ResearchInnovation Policy and the Economy
In the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) is generally seen as the authority for dating US recessions.
The NBER is well known for providing start and end dates for recessions in the United States.

Economic bubble

bubblespeculative bubblebubble economy
This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble.
Both the boom and the bust phases of the bubble are examples of a positive feedback mechanism (in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances).

Monetary policy

monetarymonetary policiesexpansionary monetary policy
Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply or increasing government spending and decreasing taxation Monetarists would favor the use of expansionary monetary policy, while Keynesian economists may advocate increased government spending to spark economic growth.
It is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that less expensive credit will entice businesses into expanding.

List of recessions in the United Kingdom

previous crisesrecessionsUK recession
In the United Kingdom, recessions are generally defined as two consecutive quarters of negative economic growth, as measured by the seasonal adjusted quarter-on-quarter figures for real GDP, with the same definition being used for all other member states of the European Union.
This is a list of (recent) recessions (and depressions) that have affected the economy of the United Kingdom.

Depression (economics)

economic depressiondepressiondepressions
A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to as an economic depression, although some argue that their causes and cures can be different.
It is a more severe economic downturn than a recession, which is a slowdown in economic activity over the course of a normal business cycle.

Recession shapes

double-dip recessionL-shaped recessiondouble dip recession
As an informal shorthand, economists sometimes refer to different recession shapes, such as V-shaped, U-shaped, L-shaped and W-shaped recessions.
Recession shapes are used by economists to describe different types of recessions.

Fiscal policy

fiscalfiscal policiesfiscal management
Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply or increasing government spending and decreasing taxation

Keynesian economics

KeynesianKeynesianismKeynesian theory
A liquidity trap is a Keynesian theory that a situation can develop in which interest rates reach near zero (zero interest-rate policy) yet do not effectively stimulate the economy. Monetarists would favor the use of expansionary monetary policy, while Keynesian economists may advocate increased government spending to spark economic growth.
Keynesian economics (sometimes Keynesianism, named for the economist John Maynard Keynes) are various macroeconomic theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate demand (total spending in the economy).

Deficit spending

budget deficitdeficitstructural deficit
Krugman discussed the balance sheet recession concept during 2010, agreeing with Koo's situation assessment and view that sustained deficit spending when faced with a balance sheet recession would be appropriate.
The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit (i.e., permanent deficit): The government should run deficits during recessions to compensate for the shortfall in aggregate demand, but should run surpluses in boom times so that there is no net deficit over an economic cycle (i.e., only run cyclical deficits and not structural deficits).

Quantitative easing

credit easingQEQE3
One remedy to a liquidity trap is expanding the money supply via quantitative easing or other techniques in which money is effectively printed to purchase assets, thereby creating inflationary expectations that cause savers to begin spending again.
Quantitative easing can help bring the economy out of recession and help ensure that inflation does not fall below the central bank's inflation target.

Macroeconomics

macroeconomicmacroeconomistmacroeconomic policy
Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply or increasing government spending and decreasing taxation
Business cycles can cause short-term drops in output called recessions.

Government spending

public spendingpublic fundspublic investment
Monetarists would favor the use of expansionary monetary policy, while Keynesian economists may advocate increased government spending to spark economic growth.
Expansionary fiscal policy can be used by governments to stimulate the economy during a recession.

Paradox of thrift

Paradox of saving
Behavior that may be optimal for an individual (e.g., saving more during adverse economic conditions) can be detrimental if too many individuals pursue the same behavior, as ultimately one person's consumption is another person's income Too many consumers attempting to save (or pay down debt) simultaneously is called the paradox of thrift and can cause or deepen a recession.
This paradox is based on the proposition, put forth in Keynesian economics, that many economic downturns are demand-based.

Inflation

inflation rateprice inflationfood inflation
Economist Walter Heller, chairman of the Council of Economic Advisers in the 1960s, said that "I call it a Reagan-Volcker-Carter recession. The resulting taming of inflation did, however, set the stage for a robust growth period during Reagan's.
Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy.

Money

monetaryspeciecash
For example, if companies expect economic activity to slow, they may reduce employment levels and save money rather than invest.
These include hyperinflation, stagflation, recession, high unemployment, shortages of imported goods, inability to export goods, and even total monetary collapse and the adoption of a much less efficient barter economy.

Conference Board Leading Economic Index

Index of Leading IndicatorsIndex of Leading Economic IndicatorsLeading Economic Index
These variables have historically turned downward before a recession and upward before an expansion.

Federal funds rate

fed funds rateinterest ratesbase rate
The Federal Reserve has responded to a potential slow-down by lowering the target federal funds rate during recessions and other periods of lower growth.

Early 1980s recession

recessionrecession of the early 1980seconomic recession
The early 1980s recession was a severe global economic recession that affected much of the developed world in the late 1970s and early 1980s.

Great Recession

late-2000s recessionrecessionlate 2000s recession
The most recent recession to affect the United Kingdom was the late-2000s recession.
The Great Recession was a period of general economic decline (recession) observed in world markets during the late 2000s and early 2010s.

Early 2000s recession

recession2001 recessioneconomic recession
The recession affected the European Union during 2000 and 2001 and the United States from March to November 2001.

Timeline of the Great Recession

The timeline of the Great Recession details the many elements of this period.
A recession is a period of two quarters of negative GDP growth.

Deflation

deflationarydeflationary spiralmoney supply contracted
Deflation usually happens when supply is high (when excess production occurs), when demand is low (when consumption decreases), or when the money supply decreases (sometimes in response to a contraction created from careless investment or a credit crunch) or because of a net capital outflow from the economy.

Great Recession in the United States

Great Recessionrecession2008 recession
The 2007–2009 recession saw private consumption fall for the first time in nearly 20 years.
In the early months of 2008, many observers believed that a U.S. recession had begun.