Business cycle dating committee recession definition
Findings Methodology Data sources FAQs The CEPR Euro Area Business Cycle Dating Committee, which is composed of nine CEPR researchers, establishes the chronology of recessions and expansions of the eleven-original euro-area member countries plus Greece for 1970-1998, and of the entire euro area from 1999 onwards.The Committee released its new findings in August 2017.Real output and investment fall, resulting in rising UNEMPLOYMENT.A recession is usually caused by a fall in AGGREGATE DEMAND and, provided that the authorities evoke expansionary FISCAL POLICY and MONETARY POLICY, it can be reversed. Technically, two successive quarters of falling gross domestic product as judged by the National Bureau of Economic Research, a private nonprofit, nonpartisan research organization founded in 1920. Quarters of recession are indicated in grey, and quarters of expansion in white in the figure below.
a phase of the BUSINESS CYCLE characterized by a modest downturn in the level of economic activity (ACTUAL GROSS NATIONAL PRODUCT).
NBER uses monthly data to date the start and ending months of recessions. While there is no technical definition of a recession, they are conventionally defined by two or more consecutive quarters of negative GDP growth. The National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product.
Recessions are marked by declines in productivity and investment and high unemployment. A recession affects different securities in different ways.
the peak is not included in the recession shading, but the trough is).
A temporary downturn in economic activity, usually indicated by two consecutive quarters of a falling GDP.Recessions are typically shorter than the periods of economic expansion that they follow, but they can be quite severe even if brief.