Business cycle dating committee recession
The UK, Canada and Australia avoided the recession, while Russia, a nation that did not experience prosperity during the 1990s, in fact began to recover from said situation. This recession was predicted by economists, because the boom of the 1990s (accompanied by both low inflation and low unemployment) slowed in some parts of East Asia during the 1997 Asian financial crisis.The recession in industrialized countries wasn't as significant as either of the two previous worldwide recessions.The events of September 11 also hurt the Canadian stock markets and were especially devastating to the already troubled airline sector.However, in the wider economy, Canada was surprisingly unhurt by these events.From 2000 to 2001, the Federal Reserve, in a move to protect the economy from the overvalued stock market, made successive interest rate increases; while this may have initiated the readjustment, it is starkly contrasted with the severe, prolonged recession that would have occurred had the unsustainable growth continued unabated.Using the stock market as an unofficial benchmark, a recession would have begun in March 2000 when the NASDAQ crashed following the collapse of the dot-com bubble.
Canada's fiscal management during the period has been praised as the federal government continued to bring in large surpluses throughout this period, in sharp contrast to the United States.
While growth slowed, the economy never actually entered a recession.
This was the first time that Canada had avoided following the United States into an economic downturn.
However conditions improved, and the Federal Reserve raised interest rates six times between June 1999 and May 2000 in an effort to cool the economy to achieve a soft landing.
The burst of the stock market bubble occurred in the form of the NASDAQ crash in March 2000.