Business cycle dating committee definition Girl live chatxxx
In determining the chronology of the euro area business cycle, the CEPR Committee adopted a definition of a recession similar to that used by the National Bureau of Economic Research (NBER), which has for many years dated the US business cycle.The Committee had to adapt the NBER definition, however, to reflect specific features of the euro area.Q: Why doesn't the committee accept the two-quarter definition?A: The committee's procedure for identifying turning points differs from the two-quarter rule in a number of ways.It is the “ups and downs” in economic activity, defined in terms of periods of expansion or recession.The US’ National Bureau of Economic Research (NBER) defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales. A BCDC maintains a chronology comprising alternating dates of peaks and troughs in economic activity.
How does that relate to the NBER's recession dating procedure?
Timely identification of economic contraction and its severity allows policymakers to intervene, and thereby reduce its amplitude and duration.
In addition, firms can re-evaluate projections of sales and profits, and the consumers their purchasing and investment plans, based on information on transitions to new business cycle phases.
In the recession beginning in December 2007 and ending in June 2009, real GDP declined in the first, third, and fourth quarters of 2008 and in the first quarter of 2009.
The committee places real Gross Domestic Income on an equal footing with real GDP; real GDI declined for six consecutive quarters in the recent recession.