Recession shapes
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Recession shapes, or recovery shapes, are terms used by economists to describe different types of recessions and their subsequent recoveries. There is no specific academic theory or classification sys
V-Shape: US 1953 recession Percent Change in Real GDP (annualized; seasonally adjusted); Average GDP growth 1947–2009 Source: BEA
U-Shape: US 1973–75 recession Percent Change in Real GDP (annualized; seasonally adjusted); Average GDP growth 1947–2009 Source: BEA
L-Shaped: Lost Decade in Japan. Percent Change in Real GDP (annualized; seasonally adjusted); Average GDP growth 1950–2000 Source: Penn World Tables
Lost Decades
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The Lost Decades are a lengthy period of economic stagnation in Japan precipitated by the asset price bubble's collapse beginning in 1990. The term Lost Decade originally referred to the 1990s, but th
Recession shapes
…an L. This is the most severe of the different shapes of recession. Alternative terms for long periods of underperformance include "depression" and "lost decade"; compare also "malaise". A classic example of an L-shaped recession occurred in Japan following the bursting of the Japanese asset price bubble in…
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