Economic Recovery

A period of increasing business activity signaling the end of a recession. Much like a recession, an economic recovery is not always easy to recognize until at least several months after it has begun. Economists use a variety of indicators, including GDP, inflation, financial markets and unemployment to analyze the state of the economy and determine whether a recovery is in progress.

Some confusion commonly results from the use of both leading and lagging indicators in analyzing whether an economic recovery is in progress. Leading indicators, such as the stock market, often rise ahead of economic recovery. This is because stocks are priced based on future expectations. On the other hand, employment is typically a lagging indicator. Unemployment often remains high even as the economy begins to recover because many employers will not hire additional personnel until they are confident there is a long-term need for new hiring.

Investment dictionary. . 2012.

Look at other dictionaries:

  • economic recovery — returning of an economy to a stable and healthy condition …   English contemporary dictionary

  • Economic Recovery Tax Act of 1981 — The Economic Recovery Tax Act of 1981 (also known as ERTA or the Kemp Roth Tax Cut) was A bill to amend the Internal Revenue Code of 1954 to encourage economic growth through reductions in individual income tax rates, the expensing of depreciable …   Wikipedia

  • Economic Recovery Tax Act Of 1981 - ERTA — A law that lowered income tax rates and allowed for expensing of depreciable assets. The Economic Recovery Tax Act of 1981 (ERTA) also included several incentives for small business and incentives for saving. The ERTA also provided for automatic… …   Investment dictionary

  • Zimbabwe Democracy and Economic Recovery Act of 2001 — The Zimbabwe Democracy and Economic Recovery Act (S. 494) is an act passed by the United States Congress which sanctioned Zimbabwe for its involvement in the Second Congo War and the government s unwillingness to make the transition to… …   Wikipedia

  • President’s Economic Recovery Advisory Board — Das President s Economic Recovery Advisory Board (kurz: PERAB) ist ein Beratungsgremium der Regierung der Vereinigten Staaten. Es wurde am 26. November 2008 von Präsident Barack Obama vorgestellt und am 6. Februar 2009 gegründet. Das Board wird… …   Deutsch Wikipedia

  • Housing and Economic Recovery Act of 2008 — The Housing and Economic Recovery Act of 2008 (USStatute|110|289|122|2654|2008|07|30) designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on… …   Wikipedia

  • Housing And Economic Recovery Act (HERA) — This act was created to address the subprime mortgage crisis of 2008. The Housing and Economic Recovery Act (HERA) allowed the Federal Housing Administration (FHA) to guarantee up to $300 billion in new 30 year fixed rate mortgages for subprime… …   Investment dictionary

  • economic — ec‧o‧nom‧ic [ˌekəˈnɒmɪk◂, ˌiː ǁ ˈnɑː ] adjective [only before a noun] 1. ECONOMICS COMMERCE relating to or involving economics, money, finance, industry, trade etc: • The economic climate (= general state of the economy ) is not …   Financial and business terms

  • Economic democracy — is a socioeconomic philosophy that suggests a shift in decision making power from a small minority of corporate shareholders to a larger majority of public stakeholders. There is no single definition or approach for economic democracy, but most… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.