• A U-shaped recovery is so called because during these periods the main indicators of economic activity take the form of the letter “U”.

  • U-shaped booms happen when a recession hits and the economy doesn’t immediately bounce back, but somersaults to the bottom for a few blocks.
  • Examples of a U-shaped boom are the Nixon recession of 1973-1975 and the recession of 1990-1991 following the savings and loan crisis.