
Why do recessions happen? Tyler Goodspeed joins Kevin Coldiron to challenge some of the most deeply held beliefs in economics. Drawing on more than three centuries of data from the United States and the United Kingdom, he argues that recessions are rarely the inevitable consequence of excess or financial imbalances. Instead, they are often triggered by unexpected external shocks that are difficult to predict. The conversation explores why expansions do not simply die of old age, why recessions fail to cleanse the economy, and what policymakers and investors should focus on instead when preparing for an uncertain future.
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Episode TimeStamps:
00:00 - Why recessions are often caused by unexpected shocks
00:54 - Tyler Goodspeed's research into four centuries of economic history
06:05 - Why economic expansions do not die of old age
13:48 - Debunking the boom