The Great Recession of 2007–2009 was a severe global economic downturn that began with the collapse of the housing bubble in the United States. It led to widespread financial instability, massive job losses, and significant declines in consumer wealth and economic activity.
congrats on reading the definition of The Great Recession of 2007–2009. now let's actually learn it.
The U.S. housing market crash triggered the Great Recession, leading to a foreclosure crisis.
Major financial institutions faced significant failures or required government bailouts during this period.
The Federal Reserve implemented unprecedented monetary policies, including near-zero interest rates and quantitative easing.
Unemployment rates soared, peaking at around 10% in the U.S. in October 2009.
The recession had a prolonged impact on global economies, affecting trade, investment, and fiscal policies worldwide.
Review Questions
What event is considered the initial trigger for the Great Recession?
Which major policy did the Federal Reserve implement to combat the effects of the Great Recession?
What was one major consequence of the Great Recession on employment?
Related terms
Subprime Mortgage Crisis: A nationwide banking emergency occurring between 2007-2010, which contributed to the collapse of many financial institutions.
Quantitative Easing: A monetary policy where central banks purchase securities from the market to increase money supply and encourage lending and investment.
Bailout: Financial support given by a government or other institution to prevent an entity from failing.