The Great Recession Of 2008 - 1691 Words

Stefanos Lazaridis Professor Demiray Economics 200 October 18, 2015 Great Recession of 2008 The Great Recession in 2008 led to a huge crisis in the United States economy. This recession almost led to the entire collapse of the United States economy due to the constant unstable changes in legislation, regulation, along with the changes in fiscal and monetary policies. Furthermore, many economists believe that the increase of excess monetary and government irresponsibility led to the overall crisis in the mid to late 2000’s. Some economists believe that the oversupply of monetary contributed to the 2008 crisis due to low interest rate targets that were substantially below the monetary requirement. In this paper I will discuss the effects of the changes in monetary and fiscal policies that altered the economy in 2008 as well as the current and desired gross domestic product for the future United States economy. The United States fiscal policy can be defined by how the United States government collects revenue which is usually through taxes from c onsumers, and how the government spends (expenditures) the money collected in order to influence the economy. Moreover, many Keynesian economists believe that by adjusting level of taxation and government expenditures, supply and demand could also impact aggregate demand. For example, if John says that there needs to be an increase in jobs to enhance overall stimulation in the future economy, he would have to allocate resources andShow MoreRelatedThe Great Recession Of 20081123 Words   |  5 Pages The Great Recession of 2008 Debra Turner ECON 102 Professor, Shahrokh American Public University September 26, 2015 â€Æ' The Great Recession of 2008 Recession is a significant decline in real GDP, real income, employment, industrial production, and wholesale/retail sales, which last more than a few months. (Economic recession, n.d.) 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There were lower interest rates at the time, an d this seemed like a good idea for most individuals who were searchingRead MoreThe Great Recession in the year 20081063 Words   |  5 PagesRecession 16Specifically, Freund (2009) defines global downturns as years when world real GDP growth is (1) below 2 percent, (2) more than 1.5 percentage points below the previous five-year average, and (3) at its minimum relative to the previous two years and the following two years. 1975, 1982, 1991, 2001, and 2008 Freund (2009) describes the evolution of world trade following four previous global downturns. She finds that the size of the decline in world trade during these episodes is Read MoreThe Great Depression of 1929 vs. the Great Recession of 20082799 Words   |  12 PagesThe Great Depression of 1929 Vs. The Great Recession of 2008 In America there have been great economic struggles and triumphs. The many great leaders of this country have foraged, failed, and overcome some very difficult times. 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The book used as reference in this essay, the Diary Of A Very Bad Year: Confessions of an AnonymousRead MoreGreat Recession 2008 Economic Crisis, emerged in recent months of 2008 and many countries of the2500 Words   |  10 PagesGreat Recession 2008 Economic Crisis, emerged in recent months of 2008 and many countries of the world are adversely affecting economic development. Especially in this crisis compared with 1929 World Economic Crisis in September 2008 has become visible. The market value of real property in the United States losing one and kept it as a result of the increase in personal bankruptcies even though it is believed that triggered the crisis. Causes Throughout the 2000s, especially in oil and all commoditiesRead MoreFiscal and Monetary Policy Before During and After the â€Å"Great Recession† of 2008594 Words   |  3 PagesOne of the most interesting facets of The Great Recession of 2008 is that it didn’t really begin in 2008. The fiscal and monetary policy that prompted what we know now as the Great Recession of 2008 really began in 2006 and 2007. What was happening then and why did it take so long for the nation to feel the recession? The answers to those questions explain a great deal about how the Federal Reserve Bank operates and how the different ideologies of economics affect our nation (Sumner, 2011). In