The M*A*S*H* Recession (jul 1, 1953 – may 1, 1954)
Description:
Duration: 10 monthsGDP decline: 2.7%16
Peak unemployment rate: 5.9%17
Reasons and causes:
The wind-down of the Korean War caused government spending to decline dramatically, lowering the federal budget deficit from 1.7% of GDP in fiscal 1953 to 0.3% a year later. Meanwhile, the Federal Reserve tightened monetary policy in 1953.
Added to timeline:
Date:
jul 1, 1953
may 1, 1954
~ 10 months