The Great Crisis and Great Recession of 2007–2009

Lloyd B. Thomas

Chapter Chapter 6 in The Financial Crisis and Federal Reserve Policy, 2011, pp 93-112 from Palgrave Macmillan

Abstract: Abstract In spite of monetary and fiscal stimulus of unprecedented magnitude implemented relatively quickly, the Great Crisis severely impacted U.S. economic activity during 2008, 2009, and beyond. By most conventional measures of cyclical activity, the period extending from December 2007 through June 2009 was the most severe economic contraction in the United States since the Great Depression of 1929–1933. The Depression, in which real gross domestic product (GDP) fell by 25 percent and the unemployment rate reached 25 percent, dwarfed anything in U.S. experience, before or after. But the 2007–2009 economic contraction, dubbed “The Great Recession,” was the most severe of the ten post-1950 U.S. recessions. This chapter examines the ways in which the Great Crisis led to a severe contraction in aggregate expenditures, output, and employment, thereby exacting a very large price in terms of well-being of the nation.

Keywords: Gross Domestic Product; Unemployment Rate; House Price; Productivity Growth; Federal Reserve (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-11807-2_6

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DOI: 10.1057/9780230118072_6

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