146:
25:
122:
209:, which only increased interest rates further and subsequently issued a low percentage bond. The Federal Reserve recognized the increasing interest rates and decided to allow more reserves to be available. This worked, but interest rates plummeted sending the U.S. into a
204:
The expected inflation never happened, but the policy was still implemented. During this time, the
Treasury also lengthened the maturity of the national debt and pursued flexible interest rate policies. Alongside these policies, the Treasury also began to do
425:
418:
411:
1329:
1334:
1319:
1309:
1299:
1304:
574:
434:
817:
442:
1392:
1177:
1124:
1035:
1362:
642:
647:
438:
267:
745:
740:
735:
729:
403:
1387:
1013:
1018:
547:
1266:
1372:
1367:
1162:
334:
307:
281:
42:
1382:
1377:
108:
1008:
89:
1226:
960:
61:
46:
185:
The recession occurred because of a combination of events during the earliest parts of the 1950s. In 1951, there was a post-
988:
704:
68:
870:
966:
898:
1184:
299:
273:
1071:
1066:
1025:
1241:
1216:
993:
780:
698:
75:
35:
1261:
1251:
998:
1151:
939:
1101:
1096:
1091:
57:
1256:
1246:
1236:
1231:
1221:
612:
933:
765:
1003:
363:
322:
1189:
1172:
1167:
1156:
1119:
1114:
1108:
719:
688:
586:
326:
213:-driven recession of output and employment. GDP declined because of government spending and investment.
755:
600:
166:
854:
709:
617:
569:
537:
518:
319:
Chairman of the Fed: William McChesney Martin Jr. and the
Creation of the American Financial System
222:
1339:
1324:
1314:
1294:
1289:
1284:
1279:
1273:
591:
559:
388:
174:
161:
that began in the second quarter of 1953 and lasted until the first quarter of 1954. The total
82:
1060:
1048:
654:
627:
564:
552:
513:
482:
380:
330:
303:
277:
190:
165:
cost roughly $ 56 billion. It has been described by James L. Sundquist, a staff member of the
1141:
1136:
982:
971:
632:
622:
532:
492:
487:
462:
457:
453:
372:
291:
145:
472:
1210:
1200:
950:
891:
886:
880:
259:
198:
170:
499:
477:
206:
1356:
927:
921:
912:
906:
848:
839:
830:
812:
801:
789:
759:
581:
263:
158:
121:
671:
664:
659:
528:
523:
467:
1081:
637:
596:
542:
24:
865:
186:
384:
676:
607:
508:
504:
194:
177:, with a sharp three quarter decline that is followed by a sharp recovery.
162:
189:
inflationary period and later in the year more funds were transferred into
197:
was expected into 1952 and the
Federal Reserve set in motion restrictive
131:
173:, as "relatively mild and brief." The 1953 recession is an example of a
392:
361:
Maloney, H. D. (1959). "Monetary Policy and the
Recession of 1953-54".
210:
376:
396:
120:
407:
355:
243:
Politics and Policy: The
Eisenhower, Kennedy, and Johnson Years
296:
A History of the
Federal Reserve β Volume 2, Book 1: 1951β1969
18:
350:
1199:
1135:
1080:
1034:
949:
864:
811:
718:
687:
49:. Unsourced material may be challenged and removed.
269:A Monetary History of the United States, 1867β1960
130: Percent change from preceding period in
419:
8:
426:
412:
404:
356:Business Cycle Expansions and Contractions
157:was a period of economic downturn in the
109:Learn how and when to remove this message
144:
234:
16:Economic downturn in the United States
7:
140: Average GDP growth (1947β2009)
47:adding citations to reliable sources
1393:Presidency of Dwight D. Eisenhower
730:British credit crisis of 1772β1773
14:
443:Commonwealth of Nations countries
149:U.S. unemployment rate, 1948β1959
134:(annualized; seasonally adjusted)
125:GDP growth in the U.S., 1951β1955
245:, 1969, pg. 431, IBAN 0815782225
23:
1363:Recessions in the United States
439:recessions in the United States
169:and speechwriter for President
34:needs additional citations for
1:
1388:Presidency of Harry S. Truman
1185:1997 Asian financial crisis
818:Civil War-era United States
351:Bureau of Economic Analysis
317:Bremner, Robert P. (2004).
300:University of Chicago Press
274:University of Chicago Press
1409:
961:PostβWorld War I recession
781:Post-Napoleonic Depression
1373:1954 in the United States
1368:1953 in the United States
871:2nd Industrial Revolution
804:(1836β1838 and 1839β1843)
720:1st Industrial Revolution
488:Price-and-wage stickiness
449:
1383:1954 in economic history
1378:1953 in economic history
1152:1990s United States boom
940:Financial crisis of 1914
967:Depression of 1920β1921
899:Depression of 1882β1885
813:Early Victorian Britain
548:Real and nominal values
1072:Recession of 1969β1970
1067:Recession of 1960β1961
1026:Recession of 1937β1938
364:The Journal of Finance
150:
142:
1190:Early 2000s recession
1157:Early 1990s recession
1109:Early 1980s recession
689:Commercial revolution
587:Nominal interest rate
327:Yale University Press
148:
124:
756:Copper Panic of 1789
329:. pp. 106β110.
302:. pp. 106β115.
276:. pp. 612β614.
241:James L. Sundquist,
167:Bureau of the Budget
43:improve this article
1092:1973β1975 recession
1036:PostβWWII expansion
710:Great Frost of 1709
538:Neutrality of money
519:Classical dichotomy
435:Economic expansions
223:Lists of recessions
58:"Recession of 1953"
1274:COVID-19 recession
934:Panic of 1910β1911
766:Panic of 1796β1797
592:Real interest rate
560:Economic expansion
175:V-shaped recession
151:
143:
1350:
1349:
1061:Recession of 1958
1055:Recession of 1953
1049:Recession of 1949
746:Thirteen Colonies
553:Velocity of money
483:Paradox of thrift
292:Meltzer, Allan H.
264:Schwartz, Anna J.
191:national security
155:recession of 1953
119:
118:
111:
93:
1400:
1142:Great Regression
1137:Great Moderation
983:Great Depression
972:Roaring Twenties
493:Underconsumption
463:Effective demand
454:Aggregate demand
428:
421:
414:
405:
400:
340:
313:
287:
260:Friedman, Milton
246:
239:
141:
139:
129:
114:
107:
103:
100:
94:
92:
51:
27:
19:
1408:
1407:
1403:
1402:
1401:
1399:
1398:
1397:
1353:
1352:
1351:
1346:
1211:Great Recession
1203:
1201:Information Age
1195:
1144:
1140:
1131:
1084:
1082:Great Inflation
1076:
1038:
1030:
953:
951:Interwar period
945:
881:Long Depression
873:
869:
860:
820:
816:
807:
722:
714:
691:
683:
648:U.S. recessions
643:U.K. recessions
575:U.S. expansions
445:
432:
377:10.2307/2976370
360:
347:
337:
316:
310:
290:
284:
258:
255:
253:Further reading
250:
249:
240:
236:
231:
219:
199:monetary policy
183:
171:Harry S. Truman
137:
136:
135:
127:
115:
104:
98:
95:
52:
50:
40:
28:
17:
12:
11:
5:
1406:
1404:
1396:
1395:
1390:
1385:
1380:
1375:
1370:
1365:
1355:
1354:
1348:
1347:
1345:
1344:
1343:
1342:
1337:
1332:
1330:United Kingdom
1327:
1322:
1317:
1312:
1307:
1302:
1297:
1292:
1287:
1282:
1271:
1270:
1269:
1264:
1262:United Kingdom
1259:
1254:
1249:
1244:
1239:
1234:
1229:
1224:
1219:
1207:
1205:
1204:(2007βpresent)
1197:
1196:
1194:
1193:
1187:
1182:
1181:
1180:
1175:
1173:United Kingdom
1170:
1165:
1154:
1148:
1146:
1133:
1132:
1130:
1129:
1128:
1127:
1122:
1120:United Kingdom
1117:
1106:
1105:
1104:
1099:
1097:United Kingdom
1088:
1086:
1078:
1077:
1075:
1074:
1069:
1064:
1058:
1052:
1046:
1042:
1040:
1032:
1031:
1029:
1028:
1023:
1022:
1021:
1016:
1014:United Kingdom
1011:
1006:
1001:
996:
991:
980:
977:
974:
969:
964:
957:
955:
947:
946:
944:
943:
937:
931:
925:
919:
916:
910:
904:
901:
896:
895:
894:
889:
887:United Kingdom
877:
875:
862:
861:
859:
858:
852:
846:
843:
837:
834:
828:
824:
822:
809:
808:
806:
805:
799:
796:
793:
787:
784:
778:
775:
772:
769:
763:
753:
750:
749:
748:
743:
738:
726:
724:
716:
715:
713:
712:
707:
702:
695:
693:
685:
684:
682:
681:
680:
679:
669:
668:
667:
662:
652:
651:
650:
645:
640:
635:
630:
625:
620:
615:
605:
604:
603:
594:
589:
579:
578:
577:
572:
567:
557:
556:
555:
550:
545:
540:
535:
526:
521:
516:
502:
500:Business cycle
497:
496:
495:
490:
485:
480:
478:Overproduction
475:
470:
465:
450:
447:
446:
433:
431:
430:
423:
416:
408:
402:
401:
358:
353:
346:
345:External links
343:
342:
341:
336:978-0300105087
335:
314:
309:978-0226520025
308:
288:
283:978-0691003542
282:
254:
251:
248:
247:
233:
232:
230:
227:
226:
225:
218:
215:
207:debt refunding
182:
179:
126:
117:
116:
31:
29:
22:
15:
13:
10:
9:
6:
4:
3:
2:
1405:
1394:
1391:
1389:
1386:
1384:
1381:
1379:
1376:
1374:
1371:
1369:
1366:
1364:
1361:
1360:
1358:
1341:
1338:
1336:
1335:United States
1333:
1331:
1328:
1326:
1323:
1321:
1318:
1316:
1313:
1311:
1308:
1306:
1303:
1301:
1298:
1296:
1293:
1291:
1288:
1286:
1283:
1281:
1277:
1276:
1275:
1272:
1268:
1267:United States
1265:
1263:
1260:
1258:
1255:
1253:
1250:
1248:
1245:
1243:
1240:
1238:
1235:
1233:
1230:
1228:
1225:
1223:
1220:
1218:
1214:
1213:
1212:
1209:
1208:
1206:
1202:
1198:
1191:
1188:
1186:
1183:
1179:
1178:United States
1176:
1174:
1171:
1169:
1166:
1164:
1160:
1159:
1158:
1155:
1153:
1150:
1149:
1147:
1143:
1138:
1134:
1126:
1125:United States
1123:
1121:
1118:
1116:
1112:
1111:
1110:
1107:
1103:
1102:United States
1100:
1098:
1095:
1094:
1093:
1090:
1089:
1087:
1083:
1079:
1073:
1070:
1068:
1065:
1062:
1059:
1056:
1053:
1050:
1047:
1044:
1043:
1041:
1037:
1033:
1027:
1024:
1020:
1019:United States
1017:
1015:
1012:
1010:
1007:
1005:
1002:
1000:
997:
995:
992:
990:
986:
985:
984:
981:
978:
975:
973:
970:
968:
965:
962:
959:
958:
956:
952:
948:
941:
938:
935:
932:
929:
928:Panic of 1907
926:
923:
922:Panic of 1901
920:
917:
914:
913:Panic of 1893
911:
908:
907:Baring crisis
905:
902:
900:
897:
893:
892:United States
890:
888:
884:
883:
882:
879:
878:
876:
872:
867:
863:
856:
853:
850:
849:Panic of 1866
847:
844:
841:
840:Panic of 1857
838:
835:
832:
831:Panic of 1847
829:
826:
825:
823:
819:
814:
810:
803:
802:Panic of 1837
800:
797:
794:
791:
790:Panic of 1825
788:
785:
782:
779:
776:
773:
770:
767:
764:
761:
760:Panic of 1792
757:
754:
751:
747:
744:
742:
739:
737:
733:
732:
731:
728:
727:
725:
721:
717:
711:
708:
706:
705:Slump of 1706
703:
700:
697:
696:
694:
690:
686:
678:
675:
674:
673:
670:
666:
663:
661:
658:
657:
656:
653:
649:
646:
644:
641:
639:
636:
634:
631:
629:
626:
624:
621:
619:
616:
614:
613:Balance sheet
611:
610:
609:
606:
602:
598:
595:
593:
590:
588:
585:
584:
583:
582:Interest rate
580:
576:
573:
571:
568:
566:
563:
562:
561:
558:
554:
551:
549:
546:
544:
541:
539:
536:
534:
530:
527:
525:
522:
520:
517:
515:
512:
511:
510:
506:
503:
501:
498:
494:
491:
489:
486:
484:
481:
479:
476:
474:
471:
469:
466:
464:
461:
460:
459:
455:
452:
451:
448:
444:
440:
436:
429:
424:
422:
417:
415:
410:
409:
406:
398:
394:
390:
386:
382:
378:
374:
371:(4): 569β70.
370:
366:
365:
359:
357:
354:
352:
349:
348:
344:
338:
332:
328:
324:
323:New Haven, CT
320:
315:
311:
305:
301:
297:
293:
289:
285:
279:
275:
271:
270:
265:
261:
257:
256:
252:
244:
238:
235:
228:
224:
221:
220:
216:
214:
212:
208:
202:
200:
196:
192:
188:
180:
178:
176:
172:
168:
164:
160:
159:United States
156:
147:
133:
123:
113:
110:
102:
91:
88:
84:
81:
77:
74:
70:
67:
63:
60: β
59:
55:
54:Find sources:
48:
44:
38:
37:
32:This article
30:
26:
21:
20:
1252:South Africa
1054:
1009:South Africa
855:Black Friday
672:Unemployment
529:Money supply
524:Disinflation
468:General glut
395:– via
368:
362:
318:
295:
268:
242:
237:
203:
184:
154:
152:
105:
99:January 2016
96:
86:
79:
72:
65:
53:
41:Please help
36:verification
33:
1320:New Zealand
1278:2020β2022;
1242:New Zealand
1215:2007β2009;
1161:1990β1991;
1145:(1982β2007)
1113:1980β1982;
1085:(1973β1982)
1063:(1957β1958)
1057:(1953β1954)
1051:(1948β1949)
1039:(1945β1973)
1004:New Zealand
987:1929β1939;
963:(1918β1919)
954:(1918β1939)
936:(1910β1912)
930:(1907β1908)
924:(1902β1904)
915:(1893β1897)
909:(1890β1891)
885:1873β1879;
874:(1870β1914)
857:(1869β1870)
851:(1865β1867)
842:(1857β1858)
833:(1847β1848)
821:(1840β1870)
792:(1825β1826)
783:(1815β1821)
768:(1796β1799)
762:(1789β1793)
734:1772β1774;
723:(1760β1840)
701:(1430β1490)
699:Great Slump
692:(1000β1760)
638:Stagflation
597:Yield curve
543:Price level
298:. Chicago:
272:. Chicago:
1357:Categories
1285:Bangladesh
1222:Bangladesh
866:Gilded Age
618:Depression
570:Stagnation
229:References
193:. Further
187:Korean War
69:newspapers
1325:Singapore
1280:Australia
1257:Sri Lanka
1217:Australia
1163:Australia
989:Australia
979:1926β1927
976:1923β1924
942:(1913β14)
918:1899β1900
774:1807β1810
771:1802β1804
752:1785β1788
677:Sahm rule
608:Recession
509:Inflation
505:Deflation
385:1540-6261
266:(1993) .
195:inflation
163:recession
1310:Malaysia
1295:Botswana
1247:Pakistan
1237:Malaysia
741:Scotland
601:Inverted
565:Recovery
294:(2009).
217:See also
132:real GDP
1315:Namibia
903:1887β88
845:1860β61
836:1853β54
827:1845β46
798:1833β34
795:1828β29
786:1822β23
736:England
628:Rolling
514:Chronic
393:2976370
83:scholar
1340:Zambia
1300:Canada
1290:Belize
1227:Canada
1192:(2001)
1168:Canada
1115:Canada
994:Canada
665:Supply
660:Demand
633:Shapes
623:Global
533:demand
458:Supply
391:
383:
333:
306:
280:
211:demand
181:Causes
138:
128:
85:
78:
71:
64:
56:
1305:India
1232:India
999:India
655:Shock
473:Model
397:JSTOR
389:JSTOR
90:JSTOR
76:books
1045:1945
777:1812
441:and
437:and
381:ISSN
331:ISBN
304:ISBN
278:ISBN
153:The
62:news
373:doi
45:by
1359::
387:.
379:.
369:14
367:.
325::
321:.
262:;
201:.
1139:/
868:/
815:/
758:/
599:/
531:/
507:/
456:/
427:e
420:t
413:v
399:.
375::
339:.
312:.
286:.
112:)
106:(
101:)
97:(
87:Β·
80:Β·
73:Β·
66:Β·
39:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.