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Recession in the West: not a rerun of 1990-1991

This Economic Letter puts the current downturn in the region in perspective in several ways, including placing it in the context of broader U.S. trends and examining conditions in the District as a whole, as well as by state and by selected sectors.We also note that the impact of this downturn is quite different from the last national downturn in 1990–1991. That episode sowed the seeds of a long and difficult contraction for California, but for many other states it only damped growth and never halted their expansion. In the current downturn, California seems to be taking only a modest hit, while some other states are enduring contractions in employment for the first time in nearly 20 years.