The Great Recession, 2007-2010: Causes and Consequences Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

"A recession in the U.S. economy started at the end of 2007. As consumer and business confidence shattered issues deepened. The financial crisis and recession spread around the world. Many saw a risk that the global financial system might collapse, maybe precipitating a repeat of the lengthy economic destruction of the 1930s depression. Authorities responded by creating huge stimulus packages that substantially raised national deficits and debts, and by loosening enormous growths of the money supply and monetary policies with interest rates close to zero.

The Great Recession, 2007-2010 Causes and Consequences case study solution

In their efforts to save the monetary system, authorities also offered bailout packages to banks, including guarantees, loans and equity. By the autumn of 2009, the catastrophe had stabilized, and the look of ""green shoots"" gave promise of recovery. By 2010, it was possible to place the financial catastrophe in standpoint, and to raise question concerning the causes and consequences. Of particular concern was whether new policies might be required to prevent a recurrence, and whether some of the tighter regulations should be international in scope. A related concern was whether such regulations should be applied to non- bank financial institutions as well as banks. Authorities were also attempting to decide the best way to leave the exceptional financial and monetary standings that now seemed to place their markets in danger of ongoing deficits and future inflation."

PUBLICATION DATE: January 15, 2010 PRODUCT #: 910M08-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING