IS/LM MODEL

IS/LM Model

IS/LM Model

The Great Recession of 2008

The recent economic recession, the Great Recession of 2008, was arguably the most important economic event of the decade. Although early signs of the recession manifested in the year 2007, when a liquidity crisis was caused by BNP Paribas following its decision to withdraw from 3 hedge funds on the basis that liquidity had completely evaporated. The negative implications of such a move on the economic market were escalated when the housing bubble of the US finally burst, causing a sharp decline in the value of securities that were tied to the US real ...