Recession

Definition: A recession is defined to be a period of two quarters of negative GDP growth.

Thus: a recession is a national or world event, by definition. And statistical aberrations or one-time events can almost never create a recession; e.g. if there were to be movement of economic activity (measured or real) around Jan 1, 2000, it could create the appearance of only one quarter of negative growth. For a recession to occur the real economy must decline. A more detailed explanation is available at: Recession? Depression? What's the difference?

Terms related to Recession:

• Liquidity Trap
• Depression
• Consumer Confidence

About.Com Resources on Recession:

• Recession? Depression? What's the difference?
• What is a Recession?
• Why Don't Prices Decline During A Recession?

Writing a Term Paper? Here are a few starting points for research on Recession:

Books on Recession:

• Recessions and Depressions: Understanding Business Cycles
• The Return of Depression Economics and the Crisis of 2008
• Subprime Meltdown: From U.S. Liquidity Crisis to Global Recession

Journal Articles on Recession:

• The cleansing effect of recessions
• Predicting U.S. Recessions: Financial Variables as Leading Indicators
• Does Monetary Policy Generate Recessions?