The Great Recession is arguably one of the worst economic downturns in modern history, with global repercussions that are still being felt today. It began as a result of the bursting of the U.S. housing bubble, which had been caused largely by an unprecedented easy money policy adopted by the Federal Reserve during the early 2000s. As the demand for housing decreased and housing prices fell, the resulting economic downturn caused job losses, business failures, and a major increase in U.S. government debt.

As the recession gained steam, it spread across the world. Numerous other countries experienced declines in economic activity, asset prices depreciated, and banks and stock markets were severely impacted. One of the most notable effects of the Great Recession was the surge in unemployment in the United States – the unemployment rate rose from 4.7% in December 2006 to 10.4% in peak October 2009.

The Great Recession had wide reaching impacts beyond the world of finance. Businesses and individuals ran into severe financial distress as assets depreciated and demand for goods and services declined. Government debt increased drastically in order to fund stimulus and bailout programs to prop up the ailing economy. This increase in debt levels amplified concerns about sovereign debt crises, which continue to plague nations such as Greece and Spain.

The Great Recession had a significant impact on both global and U.S. policy. In response to the crisis, the Federal Reserve and U.S. government adopted unprecedented fiscal and monetary measures to jump-start the economy and stabilize financial markets. This included Quantitative Easing, the Troubled Asset Relief Program, and the American Reinvestment and Recovery Act, as well as additional banking regulations to promote financial stability. The effects of the Great Recession still linger today, as increased debt burdens and unemployment remain as solemn reminders of that tumultuous time.