Rolf Englund IntCom internetional
"the prospect for the economy isn’t V-shaped, it’s L-ish"
The prospect for the economy isn’t V-shaped, it’s L-ish
Real home prices, that is, prices adjusted for inflation in the rest of the economy, went up more than 70 percent from 2000 to 2006.
The 1990 recession officially ended in March 1991, but unemployment kept rising through much of 1992, allowing Bill Clinton to win the election on the basis of the economy, stupid.
The next recession officially began in March 2001 and ended in November, but unemployment kept rising until June 2003.
These prolonged recession-like episodes probably reflect the changing nature of the business cycle. Earlier recessions were more or less deliberately engineered by the Federal Reserve, which raised interest rates to control inflation.
Ending those old-fashioned recessions was easy because all the Fed had to do was relent. Ending modern slumps is much more difficult because the economy needs to find something to replace the burst bubble.
Ur Marian Radetzkis bok "Klarspråk om arbetslöshet" (SNS Förlag, 1996) sid 34 ff och 81 ff, utdrag.