ABSTRACT
The recession of 1969–1970 began in December 1969 and ended in November 1970. The recession followed what now ranks as the second longest expansion since the end of World War II, from February 1961 to December 1969, lasting 106 months—close to nine years. This chapter begins with the backdrop of main economic events during the multiyear expansion period preceding the onset of the recession. It provides an analysis of the monthly and quarterly movements of a number of economic indicators during the eighteen to twenty-four months that constituted the last phase of the expansion period. The economic indicators include employment, unemployment, inflation and deflation, industrial production, housing starts, worker earnings in manufacturing, interest rates and bank loans, consumer durable goods spending, and gross national product. The chapter includes the economic policy actions taken by the Federal Reserve, the president, and Congress at the time. It also provides an overall assessment of the economic policies preceding the onset of the recession.
