By: Mohamed Yasser Osama Ghallab
To: Dr. Ahmed Ghoneim
19 June 2011-06-19
Index
a. Chapter 1: introduction: a. What is recession b. What is the reasons of the US financial crisis 2008 b. Chapter 2: the world effect a. How did the financial crisis affect the whole world b. Why did the financial crisis affect the world c. Chapter 3: The Egyptian economy before the financial crisis a. the economy before b. GDP before c. Inflation d. Unemployment e. Net exports d. Chapter 4: The Egyptian economy after the financial crisis a. the economy after b. GDP before c. Inflation d. Unemployment e. Net exports e. Chapter 5: How can any Country make corrective actions a. Monetary policies b. Fiscal policies c. The correction actions taken by the Egyptian Government and the Central bank f. Chapter 6: Conclusion a. Where they good or bad, and what would had they done to be better b. lessons learnt from this experience
Chapter 1: Introduction:
a. What is rescission?
Recession is by definition the decrease in production for a certain economy for a certain period of time, either a quarter or a year
“Production, as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits, and inflation all fall during recessions, while bankruptcies and the unemployment rate rise.” 1
Recessions generally occur when there is a high drop in spending and usually following excess supply and decrease in demand, causing supply shock or the bursting of an economic bubble.
This phenomenon can be easily understood from the previous demand and supply graph
When the Supply increases dramatically, and the demand decreases dramatically, this is exactly when the Financial