Us economic recessions dating
The 2008 recession was so nasty because the economy immediately contracted 2.7 percent in the first quarter of 2008.When it rebounded 2 percent in the second quarter, everyone thought the downturn was over.It lowers interest rates to end a contraction or trough. The central bank raises rates to manage an expansion so it doesn't peak. The goal of economic policy is to keep the economy growing at a sustainable rate.It should be strong enough to create jobs for everyone who wants one but slow enough to avoid inflation.The essential purpose of economic activity is the promotion of human development, welfare and well-being in a sustainable manner, and not growth for growth’s sake, yet we lack effective measures to monitor progress toward these objectives.Advances in understanding, theory and measurement must necessarily proceed hand in hand.Three factors cause each phase of the business cycle.
One need only try adding and multiplying Roman numerals to realize how greatly the introduction of Hindu-Arabic numerals, the zero, and the decimal place enhanced the capacity for accounting and the growth of trade.The mariner’s compass and chronometer enabled ships to navigate safely far from land.Modern medicine could not exist without the thermometer, stethoscope, sphygmomanometer and glucometer, along with measures for blood cell count, hemoglobin, cholesterol, and countless other metrics. But unlike other measures that are confined to measuring a single dimension or quality, money has the capacity of assigning value to almost anything material or immaterial — physical objects, human labor, social status, information, obedience, loyalty and sometimes even love.But it contracted another 1.9 percent in the third quarter, before in the fourth quarter.The economy received another wallop in the first quarter of 2009 when it contracted a brutal 5.4 percent. The expansion phase started in the third quarter of 2009 when GDP rose 1.3 percent.