On the inadequacy of “Great Recession”

by Eric on January 19, 2016

I dislike the term “Great Recession” to describe our times, for technical and political reasons alike. Technically, the severe recession ended in June 2009. But, as the NBER says there,

In determining that a trough occurred in June 2009, the committee did not conclude that economic conditions since that month have been favorable or that the economy has returned to operating at normal capacity.

And indeed it still hasn’t, six and a half years after the recession ended. In fact, as Kevin O’Rourke noted, in August of 2015

the inevitable happened: measured in terms of industrial output, our current recovery was overtaken by that of the interwar period. Pretty dismal stuff.

So now, having avoided quite so severe a contraction as the 1930s, we are suffering a less impressive recovery. What do we call this ongoing period?

“Malaise” is taken, and rather ruined, by Carter-related discourse. I’ve lately been suggesting “the great economic unpleasantness” but without, I confess, really expecting it to catch on. Krugman’s old “Lesser Depression” is looking depressingly correct.