Great Recession/Timelines: Difference between revisions
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===Financial policy=== | ===Financial policy=== | ||
* The UK offered unlimited support to all UK banks by capital support, equity purchase and lending guarantees [http://news.bbc.co.uk/1/hi/business/7658307.stm] [http://news.bbc.co.uk/1/hi/business/7658277.stm], and similar action was agreed by European Union leaders [http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story], the Bank of Japan[http://www.boj.or.jp/en/type/exp/seisaku_cfc/index.htm#0101] and the US President [http://www.nytimes.com/2008/10/12/business/12imf.html], and there are rescues of individual banks in Europe [http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html][http://www.dw-world.de/dw/article/0,2144,3692522,00.html] [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4894402.ece][http://www.newsvine.com/_news/2008/08/25/1782809-danish-central-bank-rescues-nations-no-10-bank] [http://www.dw-world.de/dw/article/0,2144,3692522,00.html]. | * The UK offered unlimited support to all UK banks by capital support, equity purchase and lending guarantees [http://news.bbc.co.uk/1/hi/business/7658307.stm] [http://news.bbc.co.uk/1/hi/business/7658277.stm], and similar action was agreed by European Union leaders [http://www.latimes.com/business/la-fg-euecon13-2008oct13,1,7737780.story], the Bank of Japan[http://www.boj.or.jp/en/type/exp/seisaku_cfc/index.htm#0101] and the US President [http://www.nytimes.com/2008/10/12/business/12imf.html], and there are rescues of individual banks in Europe [http://www.ft.com/cms/s/0/f93a9b08-91ad-11dd-b5cd-0000779fd18c.html][http://www.dw-world.de/dw/article/0,2144,3692522,00.html] [http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4894402.ece][http://www.newsvine.com/_news/2008/08/25/1782809-danish-central-bank-rescues-nations-no-10-bank] [http://www.dw-world.de/dw/article/0,2144,3692522,00.html]. | ||
::::::{|class="wikitable" | ::::::{|class="wikitable" | ||
!Rescue measure | !Rescue measure | ||
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::::::::<references/> | ::::::::<references/> | ||
::Source: OECD Economic Outlook March 2009 Table 1.4 [http://browse.oecdbookshop.org/oecd/pdfs/browseit/1208051E.PDF] | ::Source: OECD Economic Outlook March 2009 Table 1.4 [http://browse.oecdbookshop.org/oecd/pdfs/browseit/1208051E.PDF] | ||
<small> | <small> | ||
[[Great Recession/Timelines#2000-2007 US housing boom and bust|'''(RETURN TO TOP)''']] | [[Great Recession/Timelines#2000-2007 US housing boom and bust|'''(RETURN TO TOP)''']] | ||
</small> | </small> | ||
===Monetary policy=== | ===Monetary policy=== | ||
* Coordinated [[monetary policy]] in the form of a [[discount rate]] cut of a half per cent was taken by the [[central bank]]s of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [http://news.bbc.co.uk/1/hi/business/7658958.stm](in October) followed by progressive reductions to reach 1/4 per cent in the United States[http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm]. (December), 1/2 per cent in the United Kingdom [http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2009/mpc0903.pdf.] (March) and 1 per cent in the [[Eurozone]][http://www.ecb.int/press/pr/date/2009/html/pr090507.en.html] (May) | * Coordinated [[monetary policy]] in the form of a [[discount rate]] cut of a half per cent was taken by the [[central bank]]s of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [http://news.bbc.co.uk/1/hi/business/7658958.stm](in October) followed by progressive reductions to reach 1/4 per cent in the United States[http://www.federalreserve.gov/newsevents/press/monetary/20081216b.htm]. (December), 1/2 per cent in the United Kingdom [http://www.bankofengland.co.uk/publications/minutes/mpc/pdf/2009/mpc0903.pdf.] (March) and 1 per cent in the [[Eurozone]][http://www.ecb.int/press/pr/date/2009/html/pr090507.en.html] (May) | ||
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* The first [[G20 summit]] of leaders of the [[Group of Twenty]] countries agreed to adopt expansionary [[fiscal policy|fiscal policies]] (November 2008) | * The first [[G20 summit]] of leaders of the [[Group of Twenty]] countries agreed to adopt expansionary [[fiscal policy|fiscal policies]] (November 2008) | ||
* Fiscal stimulus packages ranging from 1.3 per cent of GDP (France) to 4.8 per cent of GDP (United States) were launched in 2008 and early 2009 by the [[G7 countries]] and China. | * Fiscal stimulus packages ranging from 1.3 per cent of GDP (France) to 4.8 per cent of GDP (United States) were launched in 2008 and early 2009 by the [[G7 countries]] and China. | ||
:::::{|class = "wikitable" | :::::{|class = "wikitable" | ||
! % of GDP | ! % of GDP | ||
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::(Source: IMF estimates February 2009 [http://www.imf.org/external/np/pp/eng/2009/020109.pdf]) | ::(Source: IMF estimates February 2009 [http://www.imf.org/external/np/pp/eng/2009/020109.pdf]) | ||
<small> | <small> | ||
[[Great Recession/Timelines#2000-2007 US housing boom and bust|'''(RETURN TO TOP)''']] | [[Great Recession/Timelines#2000-2007 US housing boom and bust|'''(RETURN TO TOP)''']] | ||
</small> | </small> | ||
==2007 - 2010 Global downturn == | ==2007 - 2010 Global downturn == | ||
* [[Recession of 2009/Timelines#2009, 1st quarter|The recession of 2009]] | * [[Recession of 2009/Timelines#2009, 1st quarter|The recession of 2009]] | ||
Revision as of 02:47, 2 April 2010
A timeline that provides links to news reports, for each of seven aspects of the Great Recession.
For a consecutive sequence of the main events of the recession see the timelines of the subprime mortgage crisis, the crash of 2008, and the recession of 2009; and for an account of events in selected regions and countries see the addendum to this article
2000-2007 US housing boom and bust
- The average price of a US house increased by about 70% between 2000 and 2006 [1] and then fell to 6.5% below the 2006 peak by July 2007[2].
- The subprime mortgage crisis
- Prelude to the Crash (2001 - June 2007)
2007-2008 International financial panic
2008-2009 The policy response
Financial policy
- The UK offered unlimited support to all UK banks by capital support, equity purchase and lending guarantees [3] [4], and similar action was agreed by European Union leaders [5], the Bank of Japan[6] and the US President [7], and there are rescues of individual banks in Europe [8][9] [10][11] [12].
Rescue measure US Japan UK Germany France Italy Increase deposit insurance x x x [1] x Guarantee or buy bad debts x x x x x Inject capital x x x x x Nationalise x x Ring fence bad assets x x Plan to purchase toxic assets x x
- Source: OECD Economic Outlook March 2009 Table 1.4 [13]
Monetary policy
- Coordinated monetary policy in the form of a discount rate cut of a half per cent was taken by the central banks of the United States, Europe, China, Britain, Canada, Sweden and Switzerland [14](in October) followed by progressive reductions to reach 1/4 per cent in the United States[15]. (December), 1/2 per cent in the United Kingdom [16] (March) and 1 per cent in the Eurozone[17] (May)
- Quantitative easing (or "credit easing" in the case of the United States) was introduced by the central banks of the United States[18][19][20] (in December), the United Kingdom[21] (in January) and the Eurozone[22] (in May).
Fiscal policy
- The first G20 summit of leaders of the Group of Twenty countries agreed to adopt expansionary fiscal policies (November 2008)
- Fiscal stimulus packages ranging from 1.3 per cent of GDP (France) to 4.8 per cent of GDP (United States) were launched in 2008 and early 2009 by the G7 countries and China.
% of GDP 2008 2009 2010 Total United States 1.1 2.0 1.8 4.8 United Kingdom 0.2 1.4 -0.1 1.5 Germany 0.0 1.5 2.0 3.4 France 0.0 0.7 0.7 1.3 Japan 0.4 1.4 0.4 2.2 Canada 0.0 1.5 1.3 2.7 China 0.4 2.0 2.0 4.4
- (Source: IMF estimates February 2009 [23])