Boom and Bust: Economic highlights of the past century Themes & Discussions

Differences between the Great Depression , 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 weeks

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: & That may occur now.

The Great Depression Begins by michael norris on 12 October 2012michael norris depression-begins/