Lessons from previous US recessions and recoveries

Ranchhod, Satish
March 2010
Reserve Bank of New Zealand Bulletin;Mar2010, Vol. 73 Issue 1, p37
The US economy is emerging from a period of significant weakness. This article examines how US economic activity evolved during previous post-WWII recessions and recoveries, and considers what this indicates for the current period. Recoveries following previous US recessions have tended to be rapid and primarily a result of strength in the household sector. However, previous US recessions have not been associated with the significant financial disruptions that occurred during the global financial crisis. Recoveries in other economies following financial crises have tended to be protracted, especially when associated with synchronised global slowdowns. Given current economic conditions, particularly the weakness in the household sector, the current US recovery is likely to be quite gradual. Consequently, recovery is likely to be more akin to the protracted recoveries seen in other economies following financial crises, rather than the rapid recoveries that have typically followed other post-WWII recessions in the US.


Related Articles

  • When Vultures Attack. Schubert, Martin F. // Brooklyn Law Review;Spring2013, Vol. 78 Issue 3, p1097 

    No abstract available.

  • Limits of Policy Intervention in a World of Neoliberal Mechanism Designs: Paradoxes of the Global Crisis. Dymski, Gary A. // Panoeconomicus;Sep2011, Vol. 58 Issue 3, p285 

    The current global context poses several paradoxes: the recovery from the 2009 recession was not a recovery; investment, normally driven by profit rates, is lagging and not leading economic activity; the crisis is global but debate involves sub-global levels; and public safety-nets, which have...

  • Post-Recession Outlook Positive for Aluminum, Say Mill Execs. Pinkham, Myra // Metal Center News;May2011, Vol. 51 Issue 6, p2 

    The article reports on the positive outlook for the aluminum market following the recession in the U.S. Executive Steven Demetriou predicts that the market will further improve in 2011 indicating a start of an economic recovery. Demetriou notes that everyone in the market has learned their...

  • Turning Point. Schuman, Michael; Smith, Adam // Time International (South Pacific Edition);9/14/2009, Vol. 174 Issue 10, p34 

    The article discusses the outlook for economic recovery and the impact of the Global Financial Crisis in 2008-2009 on the world economy. The view of Morgan Stanley Asia's chairman Stephen Roach that the United States' debt and deficits were contributing factors to the financial crisis is...

  • INEQUALITY STOPS GROWTH. RAJAN, RAGHURAM // Prague Post;7/18/2012, Vol. 21 Issue 29, pA4 

    The article argues against the understanding of the causes of the economic crisis to learn how to achieve sustained recovery from Great Recession.

  • Preface. Banet-Weiser, Sarah // American Quarterly;Sep2012, Vol. 64 Issue 3, preceding p361 

    An introduction is presented to a special issue that focuses on racial aspects of the U.S. subprime mortgage crisis as part of the 2008 global financial crisis, noting precedents for the crisis in the economies of developing nations.

  • RESILIENCE CIRCLES. Byrnes, Sarah // Communities & Banking;Fall2012, Vol. 23 Issue 4, p19 

    The article focuses on the creation of the Resilience Circle, a group of people at a church in Boston, Massachusetts who decided to meet and discusses about what happened in the U.S. economy. It mentions that the group has realized that meetings help in weathering the economic downturn. It notes...

  • Moving Toward a 'New Frugality'.  // CU360;11/16/2009, Vol. 35 Issue 20, p2 

    The article reports on the plan of the U.S. government to survive the global financial crisis. It states that the spending of the consumer will only determine the start of economic growth since consumer spending records almost 70% of the U.S. economic activity. It is also noted that consumers...

  • INTERNATIONAL ECONOMIC OUTLOOK. Simos, Evangelos Otto // Journal of Business Forecasting;Winter2009, Vol. 28 Issue 4, p37 

    The article presents forecasts concerning the economic performance of industrialized countries in 2010. It expects that global economic recovery will be slow and complicated. It also anticipates a slowdown in productivity growth due to several factors including termination in cost savings from...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics