Questions tagged [recession]

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Possibility of recession with high interest rates

From this plot, it seems that every time there is a recession, the Federal Reserve Bank cuts interest rates. This is because money circulation slowing down will lead to a downward spiral and lower ...
0 votes
1 answer
76 views

Why is US economic data "good" but on-the-ground facts bad?

I consistently see news articles talking about how great the US economy is doing citing certain metrics. My field has had massive layoffs over the last two years and a halt in hiring. This is pretty ...
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0 answers
20 views

Long Run Model of Oligopolies After Recession

I am currently investigating about the long run impact of the COVID 19 to the US airline industry. Is there any specific (long-run) model that I can use for oligopolies (for 4 main companies)? Because ...
1 vote
0 answers
19 views

During the Covid Pandemic why did the EURO appreciate against the USD even though during recessions the USD is supposed to rise as a safe-haven?

During recessions everyone flocks to USD as a safe-haven currency. However, during the pandemic quite the opposite happened in terms of EUR/USD and the Euro appreciated against the USD all the way ...
5 votes
4 answers
143 views

Why Don't We Insure Against Recessions

I'm not an economics student or anything like that, but I've had a question on my mind for a while now. Why don't insurance companies insure against recessions. Like if the economy were to downturn, ...
1 vote
2 answers
155 views

Why is the multiplicator effect considered stronger if money is handed out to poor people rather than the well off?

Frequently, extra handout to poor people during economic crisis is motivated by the multiplier effect. The reasoning goes something like this: since the recipients are poor they will consume the extra ...
1 vote
0 answers
32 views

Is inflation the cause or just the consequence? [closed]

Inflation is usually referred as an issue to the economy and we analyze its consequences on income and economic growth. My undestanding however is that the real issue is the negative shift in ...
0 votes
1 answer
61 views

Is high inflation an indication of a recession, either now or in the near future?

I have been wondering about this. Perhaps one example of a recession without inflation would settle this quicky?