Great Recession of the World
GREAT RECESSIONS OF THE WORLD
GLOBAL MACROECONOMICS
Abstract
The NBER in the United States defines a recession as:
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months (more than two quarters), normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
In this study of global recessions of the world our aim is to prepare a cause and effects analysis for four major recessions which have occurred in the world. We are considering recessions of USA in 2007-2009, in Early 2000’s in USA, Asian market crisis in 1997 and Japanese bubble burst in 1990’s. In each of these recessions our aim is to analyse its primary cause and their various effects on macroeconomic factors like GDP fall, unemployment, inflationary situations etc. so that we can come out with some of the possible indicators of recession for any economy. Our effort is to concentrate on major economic reflectors of recessionary economy to have a better understanding of recession.
“The Great Recession” - United States 2007
Overview
According to the National Bureau of Economic Research (NBER), the U.S. economy was in a recession for 18 months from December 2007 to June 2009. It was the longest and deepest recession of the post-World War II era. The recession can be separated into two distinct phases. During the first phase, which lasted for the first half of 2008, the recession was not deep as measured by the decline in gross domestic product (GDP) or the rise in unemployment. It then deepened from the third quarter of 2008 to the first quarter of 2009. The economy continued to contract slightly in the second quarter of 2009, before returning to expansion in the third quarter.
The 2007 recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession. It is not uncommon for residential
GLOBAL MACROECONOMICS
Abstract
The NBER in the United States defines a recession as:
“A recession is a significant decline in economic activity spread across the economy, lasting more than a few months (more than two quarters), normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”
In this study of global recessions of the world our aim is to prepare a cause and effects analysis for four major recessions which have occurred in the world. We are considering recessions of USA in 2007-2009, in Early 2000’s in USA, Asian market crisis in 1997 and Japanese bubble burst in 1990’s. In each of these recessions our aim is to analyse its primary cause and their various effects on macroeconomic factors like GDP fall, unemployment, inflationary situations etc. so that we can come out with some of the possible indicators of recession for any economy. Our effort is to concentrate on major economic reflectors of recessionary economy to have a better understanding of recession.
“The Great Recession” - United States 2007
Overview
According to the National Bureau of Economic Research (NBER), the U.S. economy was in a recession for 18 months from December 2007 to June 2009. It was the longest and deepest recession of the post-World War II era. The recession can be separated into two distinct phases. During the first phase, which lasted for the first half of 2008, the recession was not deep as measured by the decline in gross domestic product (GDP) or the rise in unemployment. It then deepened from the third quarter of 2008 to the first quarter of 2009. The economy continued to contract slightly in the second quarter of 2009, before returning to expansion in the third quarter.
The 2007 recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession. It is not uncommon for residential