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When Does a Depression or a Recession End?
- roundsquare 17y agoHe makes a good point that just because GDP begins to rise it doesn't mean that we should stop worrying, but I don't really like his definition of when we say the recession is over. He wants it to be: "when GDP returns to (or near) its trend line" But I think we'd be better served by waiting till the economy is growing at its regular rate (according to Posner, about 3% annualized). That is when we know that the economy is growing appropriately. His other comments on the history of the words "depression" and "recession" are very interesting.