The Lessons Learned from the Great Recession
The Lessons Learned from the Great Recession

Author(s): Csaba Kurtucz
Subject(s): Supranational / Global Economy, Economic development
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Global economic crisis; Federal Reserve; GDP
Summary/Abstract: The lessons learned from the crisis management of the 2008 Great Recession stem from significant structural differences between the two centers of the world, the United States and the eurozone. In the case of the United States, a monetary, fiscal and political union is realized, with a single economic policy, operates as a coherent unit, uniting the three areas. In the case of the eurozone, we can talk about a monetary union. The crisis has highlighted the structural flaws of the eurozone because without a unified fiscal policy no effective economic policy can be achieved. The symptoms of the euro area crisis weren’t the consequences of the global economic downturn; rather the stalling of the integration process, the lack of real convergence, and the weaknesses of monetary and fiscal policy were the problems that have been brought to the fore and exacerbated by the crisis.

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