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Boom and Bust: Economic highlights of the past century Themes & Discussions. Differences between the Great Depression 1929-33, and the Great Recession of 2008 Use of Deficit Spending and Monetary Policy: WB (IBRD) IMF WTO Stability of Currencies : Dollar and EU’s Euro
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Boom and Bust: Economic highlights of the past centuryThemes & Discussions
Differences between the Great Depression 1929-33, and the Great Recession of 2008 Use of Deficit Spending and Monetary Policy: WB (IBRD) IMF WTO Stability of Currencies : Dollar and EU’s Euro Political and financial coordination in handling international crises.
GDP Growth & Recession? • Recession: Economic growth contracts for two quarters straight • Significant decline in economic activity is spread across the economy • Lasts more than a few months • Decline in real GDP, real income, employment, industrial production, and wholesale-retail sales. • Depression: GDP drops 10% or more • 1929 to 1933, the United States’ GDP dropped >30%.
Global Industrial Production • During the Great Depression industrial production had a massive three-year decline. • Today’s global markets experienced an initial shock • But since then global trade and global production have continued but slower • Now, world industrial production is more vibrant than it was during the Great Depression.
Bank Foreclosures Between January 30, 1933 to March 1933: 9,096 bank failures (50% of the banks). From December 2007 to May 2009, the U.S. lost 57 banks ( 0.6 % of all U.S. banks
Unemployment • Unemployment rate at the height of the Great Depression: 25%. • Today unemployment: 9.8%. • Length of Average Unemployment • Similar to that in the Great Depression, people are currently experiencing a long duration of unemployment. • By 2010, Americans were waiting an average of 35.2 weeks to find employment.
Protectionism • Similar to the Great Depression, the current recession is global. • New global system - G20, E.U. Commission, IMF, WTO attempt to curb protectionist policies.
Double Dip During Depression and Possibility for It Now The Great Depression consisted of two major economic dips: 1929-1933 & 1937-1938 That may occur now.
The Great Depression Begins 1929-1932 by michael norris on 12 October 2012 http://prezi.com/bp-rxfhqrvpm/chapter-22-the-great-depression-begins/