Recessions Are Not Always Born from Singular Events

Recessions are typically viewed as resulting from significant, singular events like 9/11 or the housing market crash. However, the current economic climate presents a more nuanced scenario where a recession could occur as a consequence of the government's efforts to combat inflation through interest rate hikes. This creates complexity in attributing blame, as the mechanisms leading to a potential recession deviate from past patterns, which often involved clear, external triggers. Recent recessions have mainly stemmed from major, identifiable incidents such as the pandemic, but the economic landscape now hints at a more gradual and potentially less clear-cut recession akin to the early 1980s, raising questions about the future impact on the economy.