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What Causes a Recession? Will the U.S. Enter a Recession? with Wharton Prof. Nikolai Roussanov

October 17, 2023 / 00:29

This episode discusses economic recessions, the Federal Reserve's role, and the challenges of achieving a soft landing. Key topics include external shocks and economic management.

The conversation highlights how external shocks can trigger major recessions, making it difficult for the Federal Reserve to maintain economic stability. The analogy of landing a plane is used to illustrate the complexities involved.

Listeners gain insights into the delicate balance the Federal Reserve must strike to avoid economic downturns while managing growth.

TLDR

External shocks complicate the Federal Reserve's efforts to achieve a soft economic landing.

Episode

0:29
00:00:00
yeah it take sometimes uh an external shock to to cause a really major recession if no such external shock
00:00:07
comes the FED can slow down the economy to the level that people would call uh of a soft Landing the problem is it's
00:00:15
very hard to engineer a soft Landing you can bring the plane down and then something happens in the very last bit
00:00:21
right before you hit the runway and all of a sudden it's not so soft anymore

Episode Highlights

  • The Challenge of Soft Landings
    Engineering a soft landing in the economy is incredibly difficult.
    “It's very hard to engineer a soft landing.”
    @ 00m 12s
    October 17, 2023
  • Unexpected Turbulence
    Last-minute shocks can derail economic stability.
    “Something happens in the very last bit.”
    @ 00m 19s
    October 17, 2023

Episode Quotes

  • It's very hard to engineer a soft landing.
    What Causes a Recession? Will the U.S. Enter a Recession? with Wharton Prof. Nikolai Roussanov

Key Moments

  • External Shock00:02
  • Soft Landing Difficulty00:12
  • Last Minute Turbulence00:19
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