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as is traditional in brief economic analysis, time is not accounted for here.


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That’s an odd way of looking at it.

GDP does not require a annual timescale. You are free to use your own. Quarters are also common and the headline makes that clear.

Plus, they can’t report on the annual GDP until the year ends, so even that 8% figure might not be accurate!


> Our analysis covers the period January 1, 2017, to September 5, 2019.

Doesn't even include the explosive growth we've seen starting in 2020.


There are just so few sources of economic data when you go back further.

Alternative theory: the metrics don’t describe our full economic experience.

The article is using neither GDP or average income to arrive at its conclusion

We have some models, but certainly none that are accurate for this kind of economic activity over the period of time we're talking about.

Yes, it seems as though economics is measured in multi-year timeframes.

This report has been written by old-school economist. I would suggest not pay attention much.

Drawing conclusions from this temporary pause in economic activity seems premature.

That's because it's omitting inconvenient facts, like zero mention of interest rates becoming sky high as one of the reasons for the slowdown.

> Laypersons often define it as 2 quarters of negative GDP growth

No. No they do not. The official definition is 2 quarters -- the layperson defines it to be whatever they feel like.


Correct.

This analysis misses a LOT of economic factors.

As well as corporate control factors.


Yep. Its passing attempt at economic analysis seems to omit the government's fingerprints all over the latest recession.

> all economic output of Japan in a year

We all know they meant "in a year", but the article isn't explicit about it -- it just says

>> the output of the world’s third-largest economy

Not "annual", not even "GDP". I bet a lot of readers came away thinking "a shortfall as big as Japan".

And maybe not just lay readers -- a "smart but not knowledgeable" reader might try to convert the stock into a flow or vice versa by assuming some interest rate and doing a back-of-the-envelope net present calculation and be off from the real numbers by an order of magnitude.


Anyone trying to make economic predictions about timescales that large is blowing hot air.

No, I’m saying there is not one, and defining it strictly as two quarters of gdp decline removes much of the utility of the business cycle dating process.

So it just missing a term then? Add in rising prices and call it a day?

> By 2016, real manufacturing output, sans computers, was lower than it was in 2007

Maybe I just overlooked it, but I didn't see any mention of the big recession that happened on the 2007 end of that interval. A lot of industries that were hit hard in that took a very long time to recover (some still have not).

Because of that, articles that do comparisons from 2007 or thereabouts probably should include a short note explaining when whatever they are looking at recovered from that recession.


Title says 'A Recession Is Coming...', yet the contents of the article directly imply that none of the indicators clearly show that.
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