Recession of 1969–70
Encyclopedia
The Recession of 1969–1970 was a relatively mild recession in the United States
. According to the National Bureau of Economic Research
the recession lasted for 11 months, beginning in December 1969 and ending in November 1970. The recession followed the second longest economic expansion in U.S. history which had begun February 1961 (only the 1990s saw a longer period of growth).
At the end of the expansion inflation was rising, possibly a result of increased deficit spending during a period of full employment
. This relatively mild recession coincided with an attempt to start closing the budget deficits of the Vietnam War (fiscal tightening) and the Federal Reserve raising interest rates (monetary tightening).
During this relatively mild recession, the Gross Domestic Product
of the United States fell 0.6 percent. Though the recession ended in November 1970, the unemployment rate did not peak until the next month. In December 1970, the rate reached its height for the cycle of 6.1 percent.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. According to the National Bureau of Economic Research
National Bureau of Economic Research
The National Bureau of Economic Research is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community." The NBER is well known for providing start and end...
the recession lasted for 11 months, beginning in December 1969 and ending in November 1970. The recession followed the second longest economic expansion in U.S. history which had begun February 1961 (only the 1990s saw a longer period of growth).
At the end of the expansion inflation was rising, possibly a result of increased deficit spending during a period of full employment
Full employment
In macroeconomics, full employment is a condition of the national economy, where all or nearly all persons willing and able to work at the prevailing wages and working conditions are able to do so....
. This relatively mild recession coincided with an attempt to start closing the budget deficits of the Vietnam War (fiscal tightening) and the Federal Reserve raising interest rates (monetary tightening).
During this relatively mild recession, the Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
of the United States fell 0.6 percent. Though the recession ended in November 1970, the unemployment rate did not peak until the next month. In December 1970, the rate reached its height for the cycle of 6.1 percent.