The global economic crisis, a reflection of the great depression.

Abstract

This project examines the current crisis of the global economy, the so called “great recession”, it emphasizes on the causes of the crisis and whether we can link it to the causes of the Great Depression. The project also examines the economic history of the United States from early 18th century until the late 2000s financial crisis. The project will show that among all past recessions, the 2008 financial crisis was the closest to reflect the great depression. The purpose of the study is to offer economists, policy makers and world leaders a study guide and a set of recommendations to avoid severe economic recessions. The area of my research is based on the U.S economy. The methodology pursued throughout the study is mainly an analysis of the economic history with extensive comparisons. Conclusions are drawn from economic reasoning of monetary and fiscal policies and backed by data analysis. The research also offers a space to present literature review. The project is divided into 5 chapters. Chapter I is a general introduction that presents the topic and the subsequent chapters. Chapter II introduces the Great Depression, its causes and impacts, and highlights aspects of fiscal and monetary policies that were implemented in the US after World War I. Chapter III presents the current global economic crisis, the causes, and the economic impact on U.S and the world. Chapter IV highlights similarities and differences of the great recession and the great depression and the lessons learnt. Finally, Chapter V will be the essence of the entire research; it offers a set of recommendations for the future that can be considered in order to avoid falling in severe recessions and huge capital destructions.