GREAT RECESSION Meaning and
Definition
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The Great Recession refers to a severe worldwide downturn in the global economy that occurred during the late 2000s. Specifically, it refers to the period of economic decline that began in 2007 and lasted until 2009. The Great Recession was largely triggered by the collapse of the housing market in the United States, which had a ripple effect across various sectors and countries.
During this period, there was a significant decrease in economic activity, resulting in a substantial rise in unemployment rates and a decline in consumer spending and investment. The financial system also experienced turmoil, with major banks and financial institutions facing insolvency and requiring government bailouts to prevent a total collapse.
The effects of the Great Recession were felt globally, leading to a global recession where many countries experienced declining GDP, increased unemployment, and reduced consumer confidence. The impact was particularly severe in the United States, where it was considered the most significant economic crisis since the Great Depression.
In response to the Great Recession, governments and central banks implemented various measures such as fiscal stimulus packages, monetary easing, and regulatory reforms to stabilize the financial system and promote economic recovery. Although the global economy eventually emerged from the recession, the effects of the Great Recession continued to be felt for years, with long-lasting impacts on employment, income inequality, and overall economic growth.
Etymology of GREAT RECESSION
The term "Great Recession" was coined in reference to the economic crisis that occurred from late 2007 to 2009. It is believed to have been influenced by the naming convention of the "Great Depression", which was a severe worldwide economic depression that took place primarily in the 1930s. The use of the term "Great" in both cases implies the scale and magnitude of the respective economic downturns.
