The Great Recession

  • Vittorio Valli


The chapter presents the main aspects of the US financial and real crises that subsequently spread to many other industrialized countries. The great recession originated from the 2007 US sub-prime crisis, which however had several deeper causes: the structural difficulties in the US balance of current accounts, the rising economic inequalities, and the mismanagement of monetary and housing policies. The latter had favored the asset inflation both in the construction industry and in the financial market. The rapid transition from the monetary to the real crises is mainly explained through a series of critical stock-flow feedbacks or vicious circles. Some remedies to avoid other future great financial and real crises are proposed. The chapter is concluded by a comparison between some important aspects of the great depression of the 1930s and the great recession.


Great financial crises The causes of the US sub-prime financial crisis From the financial crisis to the real crisis Stock-flow relations and the main vicious circles Remedies against financial crises A comparison between the great depression and the great recession 


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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Vittorio Valli
    • 1
  1. 1.Department of Economics and Statistics “Cognetti De Martiis”University of TorinoTorinoItaly

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