the pronounced global economic cycle and, in particular, developments in the emerging economies, which have become increasingly important users and consumers of commodities (see Box 1 for a comparison of recent and historical patterns in oil price developments). During the price surges of 2008 and 2011, the impact on euro area infl ation of the fl uctuations in international commodity prices The Causes of the Financial Crisis 2008 C. Wilson [2017] 1) In 2008 the world experienced the worst financial crisis since the Great Depression (1930s). The severe magnitude of the financial disaster became fully evident towards the end of 2007, it had, however begun years earlier through what many claim was the main factor in the crash; sub-prime mortgage lending. The financial crisis of 2007 The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid 2007 and early 2009. During the GFC, a downturn in the US housing market was a catalyst for a financial crisis that spread from the United States to the rest of the world through linkages in the global financial system. Many banks around the world incurred large The Financial crisis 2008 or the Great Recession is the biggest economic event in the world after the Great Depression of the 1930s. This article explains the causes and consequences of the financial crisis in a very simplified way. [You may also read- The Great Depression of the 1930s explained]. Deregulation in the financial industry was the primary cause of the 2008 financial crash. It allowed speculation on derivatives backed by cheap, wantonly-issued mortgages, available to even those with questionable creditworthiness. Rising property values and easy mortgages attracted a lot of people to avail of home loans. The Global Economic Recovery 10 Years After the 2008 Financial Crisis. 1. Prepared by Wenjie Chen, Mico Mrkaic, and Malhar Nabar Authorized for distribution by Oya Celasun . March 2019 . Abstract This paper takes stock of the global economic recovery a decade after the 2008 financial crisis. Output losses after the crisis appear to be persistent, irrespective of whether a country suffered a The TED spread spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% on October 10, 2008. Contents 1 Background 2 History 2.1 Timeline 3 Causes 3.1 Subprime lending 3.1.1 Role of affordable housing programs 3.2 Growth of the housing bubble 3.3 Easy credit conditions Financial and economic development in the context of the global 2008-09 financial crisis ☆ AntónioAfonsoa M. CarmenBlanco-Aranab doi.org/10.1016/j.inteco.2021.11.006 Get rights and content 1. Introduction The relationship between economic growth and the financial development of countries is an extensively researched subject. European perspectives on the global financial crisis: Introduction. Journal of Common Market Studies 2009. 16. Ferguson C. Inside Job. New York: Oneworld Publications; 2012. 17. Havelmann J. The Great Recession of 2008-09: Year in Review 2009. Encyclopædia Britannica, inc. January 29, 2010. 18. Matthiasson B. Iceland in 2008. Britannica Book of the year 2009. 11 6. Author Raphael Bartmann beginning with bankruptcy of lehman brothers at midnight monday, september 15, 2008, the financial crisis entered an acute phase marked by failures of prominent american and europea