The economic theory is clear. Inflation always precedes a recession. Investors also think similarly. A recent Market Live Poll conducted by Bloomberg shows that 15% of investors are expecting a US recession to begin in 2022, 48% in 2023, 21% in 2024 and 16% looking at 2025 or later. Deutsch Bank also believes the US economy could face a recession in 2023.
The world's last recession was in 2008 following the subprime mortgage crisis. The recession ended after the US government injected US$1.5 trillion into a bank bailout and economic stimulus packages.
