Great global financial recession (2008–2013)

Abstract

The economic growth that occurred between 1994-2006 created an optimistic euphoria that led most people to believe that crises were a thing of the past. Between 2007 and 2008, this optimism faded. Humanity is now faced with the inexorable evidence that, from time to time, economic cycles of recession or growth emerge which, together with globalisation, bring about significant changes in the world economy. Following this introduction, this chapter analyses the origin and causes of the first Great Global Financial Recession of the 21st century. The work initially focuses on the case of the United States, which is examined in detail to explain the importance of the use of a series of complex, high-risk financial products and the role played by rating agencies. The study is then extended to Europe, Latin America and Asia. The corresponding sections are devoted to these regions, in that order, in an attempt to clarify the peculiarities of the recession that took place in each of them. The chapter ends with some brief conclusions.