The Cause of the Great Recession: In Pursuit of an Alternative Explanation
14 Pages Posted: 16 Oct 2015
Date Written: October 14, 2015
The prevailing narrative about the Great Recession is that it was caused by a financial crisis. This paper refutes that explanation and offers an alternative, namely that issuance of bad government debt played a key role in escalating a regular recession to an economic crisis.
Keywords: Macroeconomics, Government Debt, Recession, Fiscal Policy, Monetary Policy, European Union, Euro Zone, Welfare State
JEL Classification: E32, E44, E52, E58, E60, E62, E63, E65, H50, H6
Suggested Citation: Suggested Citation