Recession Definition Federal Reserve
In other words recessions are most likely when the economy is running hot and the federal reserve has raised the real federal funds rate above its longer run value in order to cool off the economy.
Recession definition federal reserve. The recession of 1937 lived quietly in the great depression s shadow that is until the 2008 crisis rekindled interest in mid recovery contractions. By patricia waiwood federal reserve bank of cleveland the 1937 recession occurred during the recovery from the great depression. To increase the money supply that is the amount of cash and easily obtainable funds circulating throughout the country the federal reserve reduces short term interest rates.
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