Article Preview
A Never-Ending Economic Crisis?
- Abstract
In 2008, the global economy experienced a brutal financial retraction not seen since the 1930s. The value of virtually every asset in the world was reappraised downward, led by housing in the United States. The situation was like an unstoppable force of nature. In response, most of the world’s central banks, including the Federal Reserve in the United States, slashed short-term interest rates to near zero percent and flooded the financial system with liquidity. World governments produced fiscal-stimulus packages of mind-boggling size.
Global governments spent an astonishing $17 trillion to support the world economy in the form of bailouts, guarantees, and stimulus packages. To put this number in perspective, $17 trillion represents one quarter of global GDP. Aggregate government budget deficits jumped by 737 percent over the previous year.
About the Author
This article is available for purchase to subscribers and for individual purchase
Subscriber Sign In
Not A Subscriber?
