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The Expansion of 1982:4 - ?: History and Forecasts
Recoveries and Slowdowns
Among the long observed "stylized facts" of business cycle history is the positive correlation between the amplitudes of a contraction and the subsequent expansion. Deep declines tend to be followed by large rises in output, shallow declines by small rises. Conforming to this rule, the severe recession of 1981-82 issued in the vigorous recovery of 1983 and early 1984. A frequent characteristic of long business expansions is that they contain one or two phases of below-average growth. Such periods of moderation can prolong the duration of the expansion, particularly if accompanied ...