Chapter 8 covers the Great Recession, which caused the most severe and globalized recession since the Great Depression. Markets across the world, connected to the US financially or through trade, went into decline as US mortgage assets and their derivatives tumbled beginning in 2007. We refer to this crisis as the “Great Recession of 2008” because it was in this year that global stock markets tumbled and global banks experienced failure on a large scale. This was the year that panic set in. Eventually the crisis laid bare and greatly exacerbated structural problems in the euro regions. In this chapter, we describe the causes, events, and outcomes of the Great Recession. Keywords: Great Recession, eurozone crisis
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