"The U.S. Federal Reserve Board's decision Wednesday to cut interest rates appears to signify the Fed's determination to avoid, by all means, what U.S. economists call the 'L-shaped' economic pattern, in which the economy hits a bottom followed by a protracted period of lateral movement along the trough. ... As to the U.S. economic outlook, business circles in that country have given up on the prospect of a 'V-shaped' recovery, in which the economy rebounds quickly from a slowdown. Business leaders have even grown uncertain about the possibility of a 'U-shaped' recovery, in which the economy recovers after a certain period of adjustment."
—"Fed cut slashes at Japan's economy," The Daily Yomiuri, April 20, 2001
Viewing economic output as the shape of a letter is nothing new. In fact, the use of U-shaped and V-shaped go back to at least the economic slowdown of the mid-70s:
"The prevailing view is still for a U-shaped recovery."
—William B. Franklin, "Economists sketch the recovery's odd shapes," Business Week, July 14, 1975
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Unsurprisingly, however, these terms have made a big comeback in recent months as business pundits and analysts have tried to discern the looming shape of the current downturn. Given that the present woes have been caused to a certain degree by the bursting of the technology bubble, perhaps the current economic period will prove to be "e-shaped."
