The great recession experienced in 2008 was manifested in a great decline of the global economic perspectives. The recession was exhibited through a credit crunch that was experienced in various countries in the world, and it extended between 2007 and 2009. The period oversaw low economic growth in various entities and financial systems, and this led to the fall in the confidence of the global economy that resulted in an instability in the financial systems. Europe led to further problems to the recession because of the over-value of the single currency that was used in the continent and this is one of the factors that led to the escalation of the recession to unexpected levels.
The recession affected various entities that rely on the status of the global economy. The banking system experienced major problems dues to the recession because of the financial instability that was experienced. The instability led to the fluctuation of the inflation rates leading to inconstancy in the operations of the Central Banks across the globe causing a disaster in the financial systems. The real estate industry was adversely affected by the stats of events associated with the recession because the economic instability led to the massive collapse in housing markets associated with the negative effects on wealth. As one of the adjustment struggles for the financial and economic market, the rates of unemployment increased to alarming rates.
Some of the corrective measures to the recession include the interventions from the governments of the financial institutions to avoid the busting situations. This led to the increase in the level of confidence in these institutions that was essential towards gaining confidence. The expansions of fiscal policies and cutting of the interest rates were also elemental towards the moderation of the fiscal stimulus to assist in gaining an equilibrium on major financial entities.
Fried, Joseph. Who Drove the Economy into the Ditch? 2012. New York: Algora Publishing.
Read, Colin. Global financial meltdown: how we can avoid the next economic crisis. 2009. New York: Palgrave Macmillan. 2009