Why Recessions Are Not about Declining GDP

Tags: Business Cycles, Interventionism, Booms and Busts

06/30/2025 Frank Shostak

A recession is defined by negative economic activity over several months with an accompanying decline in GDP. However, given the actual makeup of GDP, it is inaccurate to directly tie recessions to GDP at all.

Original article: https://mises.org/mises-wire/why-recessions-are-not-about-declining-gdp

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