Cherub
February 19th, 2008, 2:06 am
History of US Recession (http://recession.org/what-is-recession/history-of-recession-in-the-us/35-recession/48-history-of-us-recession)
Library (http://recession.org/library) - Recession (http://recession.org/library/35-recession)
Early 2000s recession
The U.S. economy shrank in three non-consecutive quarters in the early 2000s (the third quarter of 2000, the first quarter of 2001, and the third quarter of 2001). Strictly speaking, the U.S. economy was not in recession during this period -- the common definition being "a fall of a country's real gross domestic product in two or more successive quarters."
Those using a less traditional definitions of the term deem part or all of this period to have been a recession and there remains some debate over the start and end dates. The initial report by the National Bureau of Economic Research (NBER), declares a recession that lasted from March 2001 to November 2001 (Someone add an application of an AD-AS model for ECO 202), as real gross domestic product dropped during this period by 0.2% total from the fourth quarter of 2000. However, even this definition is in doubt. Several members of NBER's business cycle dating committee have said that revised data indicates a recession actually began some time within the final months of 2000. Committee members suggest they are inclined to move the date.
NBER President Martin Feldstein said:
"It is clear that the revised data have made our original March date for the start of the recession much too late. We are still waiting for additional monthly data before making a final judgment. Until we have the additional data, we cannot make a decision."
Controversy over the precise dates of the recession led to the characterization of the recession as the Clinton Recession, if it could be traced to the final term of President Bill Clinton. A move in the recession date in a 2004 report by the Council of Economic Advisors to several months before the one given by the NBER was seen as politically motivated.
Using the stock market as a benchmark, a recession began in March 2000 when the NASDAQ crashed following the collapse of the Dot-com bubble. The Dow Jones Industrial Average was relatively unscathed by the NASDAQ's crash until the September 11, 2001 attacks, after which the DJIA suffered its worst one-day point loss and biggest one-week losses in history. The market rebounded, only to crash once more in the final two quarters of 2002. In the final three quarters of 2003, the market finally rebounded permanently, agreeing with the unemployment statistics that the recession lasted from 2001 through 2003.
Previous Recessions in US History
Panic of 1907 (1907 - 1908), begins with a run on Knickerbocker Trust Company stock October 22nd 1907 sets events in motion that will lead to a depression in the United States. Duration: 13 months
Post-WWI recession - marked by severe hyperinflation in Europe over production in North America. Very sharp, but also brief.
Great Depression (1929 to late 1930s), stock market crash, banking collapse in the United States sparks a global downturn, including a second but not heavy downturn in the U.S., the Recession of 1937. Durations: 43 and 13 months respectiviely.
Recession of (1945) Duration: 8 months
Recession of (1948 - 1949) Duration: 11 months
Post-Korean War Recession (1953 - 1954) - The Recession of 1953 was a demand-driven recession due to poor government policies and high interest rates. Duration: 10 months
Recession of (1957 - 1958) Duration: 8 months
Recession of (1960 - 1961) Duration: 10 months
Bond Inversion of (1965 - 1967) no recession materialized
Recession of (1969 - 1970) Duration: 11 months
1973 oil crisis (1973 - 1975) - a quadrupling of oil prices by OPEC coupled with high government spending due to the Vietnam War leads to stagflation in the United States. Duration: 16 months
1979 energy crisis - 1979 until 1980, the Iranian Revolution sharply increases the price of oil
(1981 - 1982) Duration: 16 months
Early 1980s recession - 1982 and 1983, caused by tight monetary policy in the U.S. to control inflation and sharp correction to overproduction of the previous decade which had been masked by inflation
Great Commodities Depression - 1980 to 2000, general recession in commodity prices
Early 1990s recession - 1990 to 1992, collapse of junk bonds and a credit crunch in the United States leads to one quarter of US GDP decline, and therefore not an official recession.
Library (http://recession.org/library) - Recession (http://recession.org/library/35-recession)
Early 2000s recession
The U.S. economy shrank in three non-consecutive quarters in the early 2000s (the third quarter of 2000, the first quarter of 2001, and the third quarter of 2001). Strictly speaking, the U.S. economy was not in recession during this period -- the common definition being "a fall of a country's real gross domestic product in two or more successive quarters."
Those using a less traditional definitions of the term deem part or all of this period to have been a recession and there remains some debate over the start and end dates. The initial report by the National Bureau of Economic Research (NBER), declares a recession that lasted from March 2001 to November 2001 (Someone add an application of an AD-AS model for ECO 202), as real gross domestic product dropped during this period by 0.2% total from the fourth quarter of 2000. However, even this definition is in doubt. Several members of NBER's business cycle dating committee have said that revised data indicates a recession actually began some time within the final months of 2000. Committee members suggest they are inclined to move the date.
NBER President Martin Feldstein said:
"It is clear that the revised data have made our original March date for the start of the recession much too late. We are still waiting for additional monthly data before making a final judgment. Until we have the additional data, we cannot make a decision."
Controversy over the precise dates of the recession led to the characterization of the recession as the Clinton Recession, if it could be traced to the final term of President Bill Clinton. A move in the recession date in a 2004 report by the Council of Economic Advisors to several months before the one given by the NBER was seen as politically motivated.
Using the stock market as a benchmark, a recession began in March 2000 when the NASDAQ crashed following the collapse of the Dot-com bubble. The Dow Jones Industrial Average was relatively unscathed by the NASDAQ's crash until the September 11, 2001 attacks, after which the DJIA suffered its worst one-day point loss and biggest one-week losses in history. The market rebounded, only to crash once more in the final two quarters of 2002. In the final three quarters of 2003, the market finally rebounded permanently, agreeing with the unemployment statistics that the recession lasted from 2001 through 2003.
Previous Recessions in US History
Panic of 1907 (1907 - 1908), begins with a run on Knickerbocker Trust Company stock October 22nd 1907 sets events in motion that will lead to a depression in the United States. Duration: 13 months
Post-WWI recession - marked by severe hyperinflation in Europe over production in North America. Very sharp, but also brief.
Great Depression (1929 to late 1930s), stock market crash, banking collapse in the United States sparks a global downturn, including a second but not heavy downturn in the U.S., the Recession of 1937. Durations: 43 and 13 months respectiviely.
Recession of (1945) Duration: 8 months
Recession of (1948 - 1949) Duration: 11 months
Post-Korean War Recession (1953 - 1954) - The Recession of 1953 was a demand-driven recession due to poor government policies and high interest rates. Duration: 10 months
Recession of (1957 - 1958) Duration: 8 months
Recession of (1960 - 1961) Duration: 10 months
Bond Inversion of (1965 - 1967) no recession materialized
Recession of (1969 - 1970) Duration: 11 months
1973 oil crisis (1973 - 1975) - a quadrupling of oil prices by OPEC coupled with high government spending due to the Vietnam War leads to stagflation in the United States. Duration: 16 months
1979 energy crisis - 1979 until 1980, the Iranian Revolution sharply increases the price of oil
(1981 - 1982) Duration: 16 months
Early 1980s recession - 1982 and 1983, caused by tight monetary policy in the U.S. to control inflation and sharp correction to overproduction of the previous decade which had been masked by inflation
Great Commodities Depression - 1980 to 2000, general recession in commodity prices
Early 1990s recession - 1990 to 1992, collapse of junk bonds and a credit crunch in the United States leads to one quarter of US GDP decline, and therefore not an official recession.