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Recession In Global Economy Essay

1492 words - 6 pages

It is a period that could well be regarded as perhaps the most turbulent ever faced by the markets; an era marked by unprecedented monetary easing, extremely low interest regime, missive credit expansion, and a mushrooming of house asset bubble leading to the final collapse of several iconic financial institutions.
Causes of recession:- a) Currency crises
b) Energy crisis
c) World War
d) Under consumption
e) Overproduction
b) Credit crunches
c) Deflation (or disinflation)
d) Foreclosures
e) Unemployment
Great Depression: 1) United States GDP annual pattern and long-term trend, 1920–40, ...view middle of the document...

Depression of 1807 (1807–1814) 7 years 10 years -- The Embargo Act of 1807 was passed by the United States Congress under President Thomas Jefferson. It devastated shipping-related industries. The Federalists fought the embargo and allowed smuggling to take place in New England.
Panic of 1819 (1819–1824) 5 years 12 years -- The first major financial crisis in the United States featured widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. It also marked the end of the economic expansion that followed the War of 1812.
Panic of 1837 (1837–1843) 6 years 18 years -- A sharp downturn in the American economy was caused by bank failures and lack of confidence in the paper currency. Speculation markets were greatly affected when American banks stopped payment in specie (gold and silver coinage).
Panic of 1857 (1857–1860) 3 years 20 years -- Failure of the Ohio Life Insurance and Trust Company burst a European speculative bubble in United States railroads and caused a loss of confidence in American banks. Over 5,000 businesses failed within the first year of the Panic, and unemployment was accompanied by protest meetings in urban areas.
Panic of 1873 (1873–1879) 6 years 16 years -- Economic problems in Europe prompted the failure of the Jay Cooke & Company, the largest bank in the United States, which burst the post-Civil War speculative bubble. The Coinage Act of 1873 also contributed by immediately depressing the price of silver, which hurt North American mining interests.
Long Depression (1873–1896) 23 years – The collapse of the Vienna Stock Exchange caused a depression that spread throughout the world. It is important to note that during this period, the global industrial production greatly increased. In the United States, for example, industrial output increased fourfold.
Panic of 1893 (1893–1896) 3 years 20 years -- Failure of the United States Reading Railroad and withdrawal of European investment led to a stock market and banking collapse. This Panic was also precipitated in part by a run on the gold supply.
Panic of 1907 (1907–1908) 1 year 14 years -- Arun on Knickerbockers’ Trust Company deposits on October 22, 1907 set events in motion that would lead to a severe monetary contraction.
Post-World War I recession (1918–1921) 3 years 11 years -- Severe hyperinflation in Europe took place over production in North America. It was a brief but very sharp recession and was caused by the end of wartime production, along with an influx of labor from returning troops. This in turn caused high unemployment.
Great Depression (1929–1939) 10 years 11 years -- Stock markets crashed worldwide and banking collapse took place in the United States. This sparked a global downturn, including a second, more minor recession in the United States, the Recession of 1937.
Recession of 1953 (1953–1954) 1 year 24 years -- After a post-Korean War inflationary period,...

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