Published Tuesday, November 28, 2006 by Frank Shostak
Contrary to the accepted way of thinking, writes Frank Shostak, recessions are not negative growth in GDP for at least two consecutive quarters. Recessions, which are set in motion by a tight monetary stance of the central bank, are about the liquidations of activities that sprang up on the back of the previous loose monetary policies. Rather than paying attention to the so-called strength of real GDP to ascertain where the economy is heading, it will be more helpful to pay attention to the rate of growth of money supply.
(Original Text)
Have We Outgrown Recessions? (3.82 MB)