Great Recession

The world economic crisis from 2007 triggered by a real estate price bubble because of a failed financial policies of the U.S. Federal Reserve ( policy of low interest rates) under Alan Greenspan, abfolgende financial crisis and banking crisis, the later sovereign debt crises to partly followed state crises in Greece. In addition, there were food crises in poor countries. How is this part of crises related to each other, is the subject of debate. The current economic crisis is commonly regarded as the first serious crisis since the Great Depression. It has since been observed an increased civil society engagement in the form of demonstrations. No direct link with the global economic crisis is not always detectable. About causes and solutions to the crisis prevails within politics and science, as well as some clarity about the extent and persistence of the crisis. From speedy recovery, many years of stagnation, to recurrent or continued translated crisis, there are a wide variety of perspectives.

Thus, in March 2012, the Bank for International Settlements at the Board of Governors of the Federal Reserve System 2012 conference in their conclusion that debt is not solved with debt. Although this sounds obvious, that's balances mechanically incorrect - as debt-financed spending other debtors of the service its borrowings enable ( balance sheet contraction ) - ie a debtor another replaces - the finding of the BIS in any case (also from the perspective of credit mechanism as well as the financial accounts ) into perspective.

For example, Robert Shiller warned Europe and the U.S. against over- saving. Similarly, the report by Olivier Blanchard ( Chief Economist of the IMF ), which was published on January 1, 2013 to the IMF (WP 13/1), a possible paradox of thrift out by also admitted the height of the fiscal multiplier is too low assumed to have the influence of national austerity policies on economic growth massively underestimated. Olli Rehn ( EU Monetary Affairs Commissioner ) doubts the correction of the height of the fiscal multiplier, or its general determination and ability to hold European austerity programs laid on.

Nobel laureate economist Joseph Stiglitz explains that no major economy ever overcame a crisis through austerity measures and literally. " Austerity measures only make things worse - they weaken demand, increasing unemployment and social costs - and lead into recession "

Since the beginning of 2013 is to be noted a deflationary tendency in the face of continued negative levels of import prices for the FRG. There is also the risk of decreasing net borrowing (total sectoral).

Overview

• Financial crisis from 2007 Financial crisis 2007/Regionaler course

• Greek sovereign debt crisis from 2010 Protests in Greece 2010-2012