The ‘Great Recession’ of 2008: a three stage theory of economic collapse

Abstract

This paper examines the causes of the great economic recession which began in the UK 2008 and which has continued into 2012 albeit as a ‘double dip recession’. Although the effects of the recession are similar, the causes of recessions are complex, with different causal factors applying to different countries at different times. This paper attempts to identify the key factors which contributed to the impact of the ‘Great Recession’ in the UK 2008-12. The research methodology will encompass secondary research into the literature behind recessive and depressive economic periods from post 1945 to the present and the economic and fiscal strategies employed by successive governments to manage them. Some sources suggest that the ‘Great Recession’ of 2008 onwards was and could have been avoided whilst others suggest it was inevitable. This paper will analyse the decision making processes of government and institutions which led to this recession, compared to recessions and depressions of recent history and construct a conclusion to whether in theory, recessions can be managed and controlled to achieve sustainable growth.