The U.S. has witnessed several recessions and economic growth periods with key exceptions like the great depression of the 1920s and early 1930s, the great inflation in the 1970s, and the great recession of 2007-08. A common explanation for the 2007-08 financial crisis (great recession) is that greedy bankers took advantage of nave borrowers and engaged in irresponsible business practices. While this is true in many respects, other factors could be attributed to this economic disaster. Answer the following questions based on the recession and government response. Be sure to think critically about the incentives all parties (politicians and bankers) face and who pays the higher price for mistakes.

Review the following resources to prepared:

https://www.nber.org/papers/w17479

https://youtu.be/GPOv72Awo68

https://youtu.be/otmgFQHbaDo

https://youtu.be/GCQfMWAikyU

• What were some of the underlying causes of the great recession? Were they similar to the great depression?
• Explain whether you feel that the monetary and fiscal policies carried out by the government adequately mitigated the effect of the great recession?
• The Federal reserve used Quantitative Easing as a tool to fix the recession. Discuss the implications of this policy, considering such issues as inequality and the transfer of wealth to the rich and super-rich.