The Economic Crisis Of 2007-2008 Essay

926 Words Nov 21st, 2015 4 Pages
The Macroeconomic policy applied to mitigate the effect of the great recession of 2007-2008

The economists classify the Great Recession of 2007-2008 as the worst financial recession since the Great Depression of 1930. During this time the world experienced a total collapse of the economy facing insecure financial conditions unknown at that time. The exact action that triggered The Great Recession of 2007-2008 is still a talking point among academics and economists. The main point of this debate goes around the role of the market failure in anticipating the crisis and the disastrous reading of the crisis by the financial institutions. There was not connection between the economic growth predictions for the time versus the real economic situation. The financial crisis of 2007-2008 collapsed the world financial system affecting stock markets, banks, millions of people’s financial situations. It affected small business as well as multinational enterprises around the globe. This crisis had devastating effects in several pivotal businesses, which ended up in bankruptcy. Thus, the levels of unemployment increased considerably, declining consumers’ wealth and the levels of GDP. In the United States the aftermath of the crisis arose in several ways such as the weakness of the dollar as and international currency, the collapse of banks and credit systems among other consequences. Nevertheless, one of the most notorious effects in America was what is known as the Real State Bubble…

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