Agricultural Economics Department


Date of this Version



Cornhusker Economics, May 4, 2016,


Copyright 2016 University of Nebraska.


The United States and the world saw a major economic decline at the end of 2007. A recession is defined as two or more consecutive quarters of negative economic growth. This one was so severe that it was given a name -- The Great Recession --and called the worst economic crisis since The Great Depression. In the United States more than 7.5 million jobs were lost, doubling the unemployment rate (Grusky, D. B. et al, 2011). There have been several investigations into the causes of the economic recession. The general conclusion is that there were complex and interlinked factors behind the emergence of the crisis, namely loose monetary policies, global imbalances, misperception of risk and lax financial regulation (Verick, S., & I. Islam, 2010).