The Great Depression and the 2007-2009 Recession: The First Two Years Compared
International Research Journal of Finance and Economics, No. 59, p. 15, December 2010
8 Pages Posted: 11 Dec 2011 Last revised: 22 Jan 2012
Date Written: December 1, 2010
The 2007-2009 recession was the most severe economic downturn since the Great Depression. However, most research regarding the Great Depression focuses on the entire decade of the 1930s. This paper compares the first two years of the Great Depression and 2007-2009 recession, including the: (1) causes; (2) severity; and (3) policy reactions. When viewed in this manner, it appears that the more recent financial downturn is not “another Great Depression.” While in some respects it was more severe than the Great Depression in year one, the two year data indicates that direct comparisons are not warranted.
Keywords: Great Depression, financial crisis, recession, 2007-2009 recession, fiscal policy, monetary policy
JEL Classification: B22, E60
Suggested Citation: Suggested Citation