4 ms·
> By any measure we're already in a recession today. Except we are not by the accepted definition of a recession (2 consecutive quarters of negative growth).
by happyopossum 4y ago
> By any measure we're already in a recession today.
Except we are not by the accepted definition of a recession (2 consecutive quarters of negative growth).
You can make the word mean something else, but then it’s kinda useless.
- capableweb 4y agoThe "accepted definition of a recession"? Where are you getting this from? I understand that some government/finance organizations in specific countries might have some sort of "definition" of the term recession, but in general parlance, "recession" is just when the economy is not doing well. Some organizations do have indicators like "2 consecutive quarters of negative growth", but doesn't mean it's a universal "accepted definition".
- qeternity 4y agoWell it is pretty much the official definition. But no, recession does not mean the economy is not doing well, because economic health is not binary. What recession means is economic contraction, and usually people look for confirmation after one quarter of negative growth, hence the two quarter “rule”.
- cco 4y agoThat is the common definition I used, we've had two consecutive quarters of widespread negative growth. Its fair that its just the Fed estimate for Q2 still, but Q1 and Q2 are negative this year.
- bigcloud1299 4y agoThis definition has changed to including higher unemployment rate like 5%. So from it we could never enter recession. Tho was introduced in NBER post 2009.