Summary of The Most Important Least-Noticed Economic Event of the Decade

Looking for the article?
We have the summary! Get the key insights in just 5 minutes.

The Most Important Least-Noticed Economic Event of the Decade summary
Start getting smarter:
or see our plans

Rating

8 Overall

9 Importance

8 Innovation

6 Style


Recommendation

Many people in the United States in 2015 and 2016 were unaware that a “mini-recession” was going on at the time. Back then, emerging markets were weakening, the US dollar was strengthening and commodity prices were falling, stifling the US agricultural, energy and related manufacturing sectors. But according to financial journalist Neil Irwin in this astute analysis, then-Federal Reserve chair Janet Yellen did notice it, and she acted to avoid turning an isolated contraction into a more widespread recession. Readers will find this a revealing look inside the Fed’s thinking.

In this summary, you will learn

  • What caused a “mini-recession” in the United States in 2015 and 2016,
  • How the actions of then-Federal Reserve chair Janet Yellen headed off a broader slowdown, and
  • Why current trade skirmishes might boomerang and hurt the US economy.
 

About the Author

Neil Irwin is an author and a senior economics correspondent for The New York Times.

 

Summary

Most people usually know right away when a recessions hits their economy, but not in the United States in 2015 and 2016. At that time, a contained “mini-recession” was running its course. Most Americans were blissfully unaware of the downturn, mainly because the overall economy kept expanding, albeit more slowly, and the jobless rate continued to drop. The slump started when Chinese leaders, worried about a credit bubble, moved to tamp down growth, which in turn prompted an economic slowdown in China and among its trade counterparties in the emerging markets. At the same time, the Federal Reserve was reversing its quantitative easing, while other advanced nations continued to loosen their monetary policies. 


More on this topic

By the same author

If the Trade War Starts to Damage the Economy, Here’s How You’ll Be Able to Tell
If the Trade War Starts to Damage the Economy, Here’s How You’ll Be Able to Tell
9
How to Become a C.E.O.?
How to Become a C.E.O.?
7
Presidents Have Less Power over the Economy Than You Might Think
Presidents Have Less Power over the Economy Than You Might Think
7

Customers who read this summary also read

World Economic Outlook April 2017
World Economic Outlook April 2017
7
World Economic Outlook October 2016
World Economic Outlook October 2016
8
Russia’s Growing Economic Ties with the Middle East
Russia’s Growing Economic Ties with the Middle East
8
Nine Facts about the Great Recession and Tools for Fighting the Next Downturn
Nine Facts about the Great Recession and Tools for Fighting the Next Downturn
8
World Economic Outlook April 2016
World Economic Outlook April 2016
7
A Ride in Rough Waters
A Ride in Rough Waters
7

Related Channels

Comment on this summary