New England is pocket of recession risk in US – Fed study
Researchers say overall threat of national downturn is low, but requires monitoring nevertheless
New England exhibits a greater risk of recession than the rest of the US, researchers with the Federal Reserve board have found.
In a research note published on January 7, economists Hie Joo Ahn, Yunjong Eo and Lucas Moyon say that although the overall threat of recession in the country is low, there are “pockets of risk”.
The authors’ model distinguishes between L-shaped recessions – which generate lasting damage, or hysteresis – and U-shaped downturns, which are followed by a full recovery.
“Whil
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