Webpages useful for teachers of intermediate macroeconomics:
The Course of the U.S. Recession
|In 2001 the U.S. economy entered its first recession since the start of the 1990s. Industrial production at the end of 2001 was some six percent below what it had been at the end of 2000. Consumer prices that had been rising at a rate of 3 to 4 percent per year during 2000 rose by only 1.5 percent in all of 2001. Real GDP in 2001 averaged only one percent more than in 2000. Unemployment rose swiftly from near 4 percent at the end of 2000 to near 6 percent at the end of 2001.
But by the end of 2001 there was a growing consensus that in all probability the recession was almost at an end. The terror attack on the World Trade Center on September 11 had not been followed by other, similar atrocities, and thus turned out to have a temporary rather than a permanent psychological effect on confidence. Falling energy prices, an extraordinary amount of reduction in interest rates over 2001, substantial fiscal stimulus from military- and disaster-related spending, and the working-off of inventories in 2001 all seemed to leave the U.S. economy poised for a renewal of economic expansion in 2002.
The average post-World War II recession in the United States has lasted for less than a year. The National Bureau of Economic Research has dated the beginning of this recession to March of 2001.
On that calendar, it is a good bet that the current recession is almost over.
2001-01-07: Argentina's Crisis (Chapter 15: Exchange Rate Regimes)
2001-12-10: The U.S. Recession (Chapter 2: Principal Macroeconomic Variables)
2001-12-03: The Overvalued Euro (Chapter 3: Exchange Rates; Chapter 15: Exchange Rate Regimes)
2001-11-26: Net Exports, the Exchange Rate, and an IS-Led Boom (Chapter 11: Balance of Payments; Chapter 15: Exchange Rate Regimes)
2001-11-19: The European Central Bank and Its Monetary Policy (Chapter 13: Stabilization Policy)
2001-11-12: Central Banks Worldwide Cut Interest Rates Again (Chapter 13: Stabilization Policy)
2001-11-05: Effects of the Collapse in Spending on Durables (Chapter 9: Income-Expenditure and the Multiplier.)
2001-10-28: What Kind of Stimulus (Chapter 13: Stabilization Policy. Chapter 9: Income-Expenditure and the Multiplier.)
2001-10-21: Federal Reserve Reaction to the Terror Attack on the World Trade Center (Chapter 13: Stabilization Policy. Chapter 10: The IS Curve.)
2001-10-14: Why a Stimulus Package Might Be Desireable (Chapter 13: Stabilization Policy. Chapter 10: The IS Curve.)
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