Finding The Root Cause Of Recessions
![Finding The Root Cause Of Recessions Finding The Root Cause Of Recessions](https://5ux.com/sites/5ux.com/files/styles/medium_250/public/resize/remote/ee746d1c6c87f27fde490f6d7a4c7f71-600x292.png?itok=g-PtMMfv)
Authored by Lakshman Achuthan and Anirvan Banerj via Bloomberg.com,
Two things bear most of the blame: external shocks and economic volatility.
The U.S. managed to avoid recession after the financial crisis, but Japan has succumbed to three contractions since 2009. Economic volatility is a key reason for this divergence, and that tells us a great deal about the risk of future U.S. recessions.