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The End of 2008 - 2009 Recession in the United States of America

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The End of 2008 - 2009 Recession in the United States of America
WANDILE SIHLE NZIMAKWE: 211546206
2013
To what extent monetary policy has aided in stabilizing and growing economies
Attempt by the Monetary Policy to bring about to an end the Great Depression in United States and Global Economy.
MONETORY ECONOMICS WRITTEN ASSIGNMENT
WANDILE SIHLE NZIMAKWE: 211546206
WANDILE SIHLE NZIMAKWE: 211546206
2013
To what extent monetary policy has aided in stabilizing and growing economies
Attempt by the Monetary Policy to bring about to an end the Great Depression in United States and Global Economy.
MONETORY ECONOMICS WRITTEN ASSIGNMENT
WANDILE SIHLE NZIMAKWE: 211546206

Introduction
In 2008, the United States have experienced the most devastating situation of great depression due to financial crisis ever since occurred during the WWII according to NBER – (National Bureau of Economic Research). Successful and big companies such as Bear Stearns, Lehman Brothers etc. retrenched workers by thousands, United States stock market collapsed, liquidity dried up and everybody knew the recession has landed. High unemployment rate, lower demand, less money (including credits) supply, increased mortgage defaults, high gas and food prices, lower GDP – (Gross Domestic Product) and declining economic growth, U.S. Dollar ($) weakening up, High PPI – (Producer Price Index), High CPI – (Consumer Price Index), decreased wages and salaries, high inflation rate, etc. were unravelling the U.S. economy.

From all the widely recognized implications of the recession, the higher unemployment is the famous and the meanest indicator of the recession. A month before the recession December 2007, the U.S. unemployment rate was 5.0% and it has been at or below this percentage for a long time. But when recession ended, the unemployment rate was around about 9.5% June 2009 it further peaked to 10.0% a 100% increase with 4.4% of Long-term unemployment rate around October 2009 which shows that after the monetary policy have tried to recover the economy it


Bibliography: Alston, Bird LLP & David Brown, Global Economies, October 10, 2008. 2008 Monetary Policy Releases Release Date: December 16, 2008 Xinhua News Agency November 24, 2008 MARK LANDLER and DAVID E Timothy R. Homan - February 27, 2009 16:45 EST http://money.cnn.com/news/economy/world_economies_gdp/
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