What Caused the Great Recession?

Research, Preprint OPEN
Homburg, Stefan;
(2014)
  • Publisher: Hannover: Leibniz Universit├Ąt Hannover, Wirtschaftswissenschaftliche Fakult├Ąt
  • Subject: wealth effect | G1 | financial crisis | E3 | E4 | Financial crisis; Great Recession; wealth effect; credit crunch; money demand; central bank | credit crunch | Great Recession | central bank | money demand
    • jel: jel:G1 | jel:E3 | jel:E4
      ddc: ddc:330

This paper examines five possible explanations for the Great Recession of 2008 and 2009, using data for the United States and the eurozone. Of these five hypotheses, four are not supported by the data, while the fifth appears reasonable.
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