The paper "Causes of the Great Recession of 2008-10" is a perfect example of a macro & microeconomic case study. The financial crisis that began in 2007 in the United States (US) spread and gathered intensity in 2008. Authorities tried to quell the situation in vain and by the start of 2009, the US economy and the global financial system were somehow locked in an economic downturn. The world experienced the biggest and sharpest slump in the international economic activity of the modern age. This ended up being the second-worst economic crisis in history following the great depression of the 1930s.
However, different parts of the world have experienced financial crises at different times that did not blow up out to the world. Part 1 of this paper reviews the causes of the GFC (Bean, 2009). The roots of the GFC are traced to the US. The country was badly bruised by the GFC and has faced major problems in the past two decades including the Dotcom bubble. Within this period, China’ s economy has been growing rapidly. The Asian economic giant has established firm strategic partnerships with many countries in the world.
Its power is growing. Amid these developments is a general feeling that the world is about to experience great regional and international systemic changes. Within this context, part 2 of this paper provides insight as to whether there is a shift in global economic power from the US to China (Antkiewicz & Whalley, 2006). There is also an ensuing debate as to whether the US dollar may in the near future lose its global position as a medium of international currency transactions and global assets.
Other currencies such as the sterling pound, the ducat, the guilder and the bezant have faced a similar fate in the past. Part 3 of this paper delves into this discussion (Cockerell & Shoory, 2012). Part 1: Causes of the Great Recession 2008-10 Quite a lot of factors combined to make the 2008-10 GFC the second harshest economic crisis ever since the Great Depression of the 1930s.
Antkiewicz, A. Whalley, J. (2006). Recent Chinese Buyouts Activity and the Implications for Global Architecture. NBER Working paper series #12072.
Bean, C. (2009). The Great Moderation, the Great Panic and the Great Contraction. BIS Review 101/2009.
Chinn (2012). A note on reserve currencies with special reference to the G-20 countries. Mimeo, University of Wisconsin.
Cockerell, L. and Shoory, M. (2012). Internationalising the Renminbi. Bulletin, Reserve Bank of Australia, June Quarter 2012.
International Monetary Fund (IMF). (2014). Currency Composition of Official Foreign Exchange Reserves (COFER). Viewed 11 April 2014,
Kanda, D. (2010). Asset Booms and Structural Fiscal Positions: The Case of Ireland. IMF Working Paper 10/57.