The state’s economy slowed moderately in 2007, the beginning of a slowdown that may last several years. The deceleration was precipitated by a downturn in the housing market that, in Massachusetts, began in late 2005, and gained downward momentum in 2006. Last summer, ﬁ nancial havoc from sub-prime mortgage defaults and falling prices throughout most of the nation tipped the nation’s economy to the brink of recession. This year, soaring energy prices threaten to weigh down the economy further, neutralizing the ﬁ scal stimulus package that is coming on line now.
Clayton-Matthews, Alan, "The Year in Review: 2007 Marks Start of Slowdown" (2008). Public Policy and Public Affairs Faculty Publication Series. 7.
University of Massachusetts Donahue Institute
Published in MassBenchmarks, Vol. 10, No. 2, pp. 4-11: http://www.massbenchmarks.org/publications/issues/vol10i2/3.pdf.