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An Unconventional Business Cycle

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This week's Economic Perspective covers the latest business cycle, which began in the third quarter of 2020
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The current economic expansion that officially began in the third quarter of 2020 is extremely unique. The peculiar nature of the current economic cycle can be attributed to several exogenous shocks, the most significant of which was the pandemic. In combination, these shocks disrupted the natural tendencies within the global economy, thereby greatly increasing the challenges faced by economists and policymakers. The most important implications pertain to inflation. The US economy is faced with an imbalance between aggregate supply and demand, which will result in a much higher rate of inflation compared with the previous 25 years... READ MORE

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May 31, 2023
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