And because of existing wealth and income disparities, those same workers of color are less likely to have the funds to bounce back quickly. Both of those things really point to the incredible importance of macroeconomic policymakers getting things right to get us out of the recession as quickly as possible and limit the amount the recession exacerbates existing inequalities.
There are two major federal policy solutions to address economically driven recessions, according to Shierholz. The first, monetary policy, is carried out by the Federal Reserve with the goal of stimulating the economy by lowering interest rates, ideally encouraging businesses to invest, hire workers, and grow their companies. The second option, fiscal policy, falls under the purview of federal lawmakers. So you start to reverse that vicious cycle. You can keep spending, demand for goods and services goes up, and more workers get [hired].
Reducing or completely eliminating pandemic relief so early in the recovery from the recession could hurt people who need those benefits to cover their immediate needs and stretch the recovery timeline longer than necessary.
Sign up to start a free trial today. Skip Navigation. Key Points. That makes the two-month downturn the shortest in U. The NBER is recognized as the official arbiter of when recessions end and begin.
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That situation, where those at the lower end of the income spectrum suffer far worse than those at the top, makes this recession in fact look a lot like the last one. And that means policymakers, who remain locked in partisan conflict, still have more work left to do. Though the economy may have escaped technical recession, plenty of dangers await if action doesn't come, said Mark Zandi, chief economist at Moody's Analytics. Zandi estimates the recession that started in February actually ended in April, but another one could be on the horizon.
The question is how durable is the expansion. Can we make it through to the other side of the pandemic without backsliding into a downturn? Skip Navigation. Key Points. Current trends in stocks, housing and retail don't reflect a recession, but this is no ordinary recession. There are a few other things that will stand out: How swiftly it came, that it was government induced, and how aggressively policymakers responded.
Economist Steve Blitz at TS Lombard thinks "the real recession has yet to emerge" and will come when the long-term repercussions of the current situation are felt.
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