century Differences between the Great Depression 192933 and the Great Recession of 2008 Use of Deficit Spending and Monetary Policy Hist of econ boom amp bust httpwwwyoutubecomwatchv83sX8Ent4vo ID: 324836
Download Presentation The PPT/PDF document "Boom and Bust: Economic highlights of th..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Boom and Bust: Economic highlights of the past
century
Differences between the Great Depression 1929-33, and the Great Recession of
2008
Use of Deficit Spending and Monetary Policy
Hist
of econ boom & bust:
http://www.youtube.com/watch?v=83sX8Ent4vo
2.4min
Understanding the National Debt and Budget Deficit
http://www.youtube.com/watch?v=3ugDU2qNcyg
6 min oct2012
2. Creation of many postwar institution, e.g., WB and IMF to fix economic problems considered as responsible for the Great Depression of 1929-33. A special US law- Employment Act of 1946, was passed to empower the President to prevent another depression.Slide2
3. WB and IMF monitoring global economies reduced sharp fluctuations in boom-bust econ. cycles.
Dollar & Euro have stabilized global monetary stability in modern times. Such stability in Europe prevented the hyperinflation in the German and Hungarian currencies that occurred during the great depression of 1929.
Coordination between International institutions - IMF and International investment institutions - helped to stop the worsening of the crisis and facilitated coordinated responses in dealing with the international economic crises.Slide3
GDP Growth: what is recession?
A
recession is when economic growth contracts for two quarters
straight and lasts more than a few months.
It is recession when economic
activity
significantly declines and the decline is
spread across the
economy.
The decline will be visible in real
GDP, real income, employment, industrial production, and wholesale-retail sales.
Under depression, GDP drops 10%, e.g.: During 1929
and 1933, the
GDP
dropped
>
30
% in the US.Slide4
Global Industrial Production
Great depression: Industrial production massively declined for 3 years
2008 Recession: Although markets globally was jolted by the initial shock, trade and production continued at slower levels.
Globally, compared to the Great depression period, production is increasing the output.Slide5
Bank Foreclosures
From January
30, 1933 to March
1933, US bank failures:
9,096
(represented
50% of
US banks).
From December
2007 to May 2009,
bank failures: 57 (0.6
% of
US banks).Slide6
Unemployment
At the intense level of the Great Depression: unemployment 25
%.
During 2008 recession:
unemployment
9.80
%.
Length
of Average
Unemployment
As
in the Great Depression,
unemployed are without a job for a
long
duration.
By the beginning of
2010, Americans
have been unemployed for 35.2 weeks while trying to find a jobSlide7
Protectionism
Free Trade vs. Protectionism
http://www.youtube.com/watch?v
=7njIlZ2xYq0
3min 2011
As during the
Great Depression, 2008 crisis and recession are global.The new institutions and structures of groups of countries - G20, the E.U. Commission, and the IMF, have worked to avoid protectionist policies.Slide8
Double Dip During
Depression …is it likely to repeat now?
During the
Great
Depression there were two
major economic
stages of dips. 1. From August 1929 through March 1933. 2. From May 1937 to June 1938