The question of whether or not the economy entered into a period of recession in 1974 has been a popular topic of discussion, To date the National Bureau of Economic Research, unofficially charged with making the distinction, sees the controversy as too close to call. But the issue of tagging 1974 with the label of “recession” is, by itself, of little significance. What is important is the common interpretation of what a period of recession means in terms of economic activity and the monetary and fiscal policies that are appropriate to deal with the situation.