In its GDP release yesterday, the Commerce Dept. made revisions back t0 2003 that showed the recession to be worse than originally thought. Using ALFRED, the St. Louis Fed’s archival tool, we can visualize the revision:
Of course, this means our output gap was — and is — bigger than originally thought. It means the stimulus was even smaller relative to the size of the problem than originally thought, and it means the hole we’re trying to climb out of is deeper than originally thought.
I hope to examine the revisions more closely as time allows.