Great Recession

Great Recession

The Great Recession was a severe worldwide economic crisis that took place from 2007 to 2009. It was the most serious financial crisis since the Great Depression.

Causes

The causes of the Great Recession are complex and varied. However, the main trigger was the U.S. housing bubble and the high-risk subprime mortgage lending practices that contributed to it. Other factors include systemic failures in corporate governance, excessive risk-taking by global financial institutions, and the bursting of the U.S. housing bubble.

Effects

The effects of the Great Recession were felt globally and led to a significant decline in consumer wealth, widespread job losses, and a downturn in economic activity. Many countries, including the United States, fell into a deep economic recession. The crisis also led to significant changes in financial regulation and a rethinking of monetary policy.

Recovery

The recovery from the Great Recession was slow and uneven. While some countries, such as the United States, recovered relatively quickly, others, such as many in the Eurozone, struggled with long-term economic stagnation. The recovery was also marked by significant changes in the global economic order, with emerging economies, such as China and India, playing a larger role.

See also

• Financial crisis of 2007–2008
• Subprime mortgage crisis
• United States housing bubble
• Great Depression

External links

• "The Financial Crisis: Lessons for the Next One" (PDF). The Federal Reserve (October 15, 2015).
• "World Economic Outlook: Crisis and Recovery" (PDF). International Monetary Fund (April 2009).