[IWE] recession boom

Jay Mehaffey iwe@warhead.org.uk
Fri, 26 Sep 2008 06:10:12 -0700 (PDT)


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>From: "williamoxley@aim.com" <williamoxley@aim.com>
>I thought a recession was any time gdp went down for 3 consecutive quarters and a boom was anytime we are not in recession....

There is no universally accepted what constitutes a recession.  In the US, a recession is whatever the NBER says it is. The GDP being down two quarters a row is often given as rule, but even that does not hold all the time.

A lot of economists think our current situation is a good example of when the GDP rule does not work. The GDP is being held up by money moving around in ways that are not real economic growth here.

Jay


      
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<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:times new roman,new york,times,serif;font-size:12pt"><div>&gt;From: "williamoxley@aim.com" &lt;williamoxley@aim.com&gt;<br>&gt;<font face="Arial, Helvetica, sans-serif"> I thought a recession was any time gdp went down for 3 consecutive quarters and a boom was anytime we are not in recession....</font><br>



 <br>There is no universally accepted what constitutes a recession.&nbsp; In the US, a recession is whatever the NBER says it is. The GDP being down two quarters a row is often given as rule, but even that does not hold all the time.<br><br>A lot of economists think our current situation is a good example of when the GDP rule does not work. The GDP is being held up by money moving around in ways that are not real economic growth here.<br><br>Jay<br></div><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><br></div></div><br>

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