The arbitrary convention does not reflect any judgment on this issue by the NBER's Business Cycle Dating Committee.A value of 1 is a recessionary period, while a value of 0 is an expansionary period.Therefore, the stock market is more volatile than the economy.When there is a recession, the stock market usually enters a bear market (a 20 percent decline). Find out When a Stock Market Crash Can Cause a Recession.The recession shading data that we provide initially comes from the source as a list of dates that are either an economic peak or trough.We interpret dates into recession shading data using one of three arbitrary methods.For this time series, the recession begins the first day of the period following a peak and ends on the last day of the period of the trough.For more options on recession shading, see the notes and links below.
The NBER is the private non-profit that announces when recessions start and stop.
Commissioner Shisken suggested this quantitative definition because many people weren't sure if the country was in a recession in 1974.
Dating recession comments