Did the stock market crash of 2008 cause the Great Recession?
The Stock Market Crash of 2008 Caused… This paper argues that the stock market crash of 2008, triggered by a collapse in house prices, caused the Great Recession. The paper has three parts. First, it provides evidence of a high correlation between the value of the stock market and the unemployment rate in U.S. data since 1929.
What triggered the 2007 recession?
As with the depression of the 1930s, the recession that began in December 2007 was triggered by a tight money policy that cased the growth rate of the monetary base to slow sharply. As in the 1930s, roughly a year into the 2008 recession a severe banking crisis caused a big increase in base money demand.
What was the financial crisis of 2008?
T he Financial crisis of 2008 is the worst financial crisis since the Great Depression, which started with crisis in subprime mortgage market in the USA and developed into a global economic downturn, the Great Recession. In this picture, two men are carrying away a “Lehman Brothers” bank sign.
When did the Great Recession start?
The great recession refers to the economic downturn between 2008 and 2013. The recession began after the 2007/08 global credit crunch and led to a prolonged period of low/negative growth, rising unemployment and a period of fiscal austerity.
The Stock Market Crash of 2008 Caused the Great Recession