ECON 102 Lecture Notes - Lecture 17: Business Cycle, Justice Of The Peace, Dow Jones Industrial Average
Document Summary
Fluctuations in gdp, inflation, and unemployment: a brief look at the history of the business cycle: 19th and early 20th centuries: volatility. During this period, gdp growth tended to bounce around a lot. The "panic" of 1893 began with railroad bankruptcies and spread to bank failures. The economy declined significantly and experienced a long four-year recession. This was the deepest recession to that date, and may be the second deepest of u. s. economic history (after the great depression). The data we have for this period are much rougher than for post world war 2 history, but estimates suggest that an equivalent measure to today"s unemployment rate hit at least 12%, perhaps as high as. The panic of 1907 was marked by significant financial instability. The financier j. p. morgan coordinated a private bank bailout widely regarded as critical to restoring financial order.
