Redefining recession | Economist.com

Economics focus | Redefining recession | Economist.com:
Sep 11th 2008
From The Economist print edition
A new yardstick for measuring slumps is long overdue
THERE has been a nasty outbreak of R-worditis. Newspapers are full of stories about which of the big economies will be first to dip into recession as a result of the credit crunch. The answer depends largely on what you mean by “recession”. Most economists assume that it implies a fall in real GDP. But this has created a lot of confusion: the standard definition of recession needs rethinking.