Wednesday 2012-03-28

From Disentangling the Channels of the 2007-2009 Recession by Stock and Watson.

The following 6 shocks seen in post world war 2 US recessions explain the severity of this recession:

  1. Oil Shock
  2. Monetary Policy Shock
  3. Productivity Shock
  4. Credit Spread Shock
  5. Uncertainty Shock
  6. Fiscal Policy Shock

Will it explain the next?