So we now have recession, a severe financial crisis, and a severe banking crisis in the advanced economies.

The effects of this recession will be particularly severe in Latin America.

While a global recession will be averted, a severe growth slowdown will not.

The phrase Great Recession creates the impression that the economy is following the contours of a typical recession, only more severe something like a really bad cold.

In the early 1990 s, when California had a more severe recession, people sought jobs in neighboring states.

America had a brief, sharp recession in 1980, followed by a long and severe one in 1981 1982.

But if nominal interest rates stay positive, while inflation is negative, then real interest rates may become too high for an economy in recession, causing recession to become more severe and prolonged.

Most of the eurozone remains mired in a severe recession now spreading from the periphery to parts of the core.

America s financial crisis has triggered a severe credit crunch that is making the US recession worse, while the deepening recession is leading to larger losses in financial markets thus undermining the wider economy.

And the policy challenges are daunting the eurozone s recession is deepening as front loaded fiscal consolidation and severe credit rationing continues.

Indeed, history suggests that severe recession and socialization of private losses often lead to an unsustainable build up of public debt.

The downturn was so severe, and lasted so long, that some even used the term depression, before settling on Great Recession.

The spread of bankruptcies triggered a severe credit crunch, which triggered a deep recession and with it a brutal rise in unemployment.

The only other way to achieve depreciation in real terms is through massive deflation of domestic prices, coupled with a severe recession.

But if the US recession is long and severe, the result could be outright recession in some countries (the United Kingdom, Spain, Ireland, Italy, and Japan), and even financial crises in vulnerable emerging market economies.

So, while the US may technically be close to the end of a severe recession, most of America is facing a near depression.

The first eleven months of the recession that followed were as severe as the first eleven months of the Great Depression that started in 1929.

WASHINGTON, DC Roughly one year ago, the global economic situation looked grim a severe global recession, sizeable wealth destruction, and declines in trade and employment.

Nevertheless, the risk of a severe recession and of a serious banking and financial crisis will ultimately force all G7 central banks to cut rates.

A disorderly rush to the exit could lead to a dollar collapse, a spike in long term interest rates, and a severe double dip recession.

But, in the face of a severe recession and endless real wars, hot button culture war issues don t have the mobilizing power that they once did.

Russia today not only suffers more from the aftermath of the global recession, but it faces severe long term liabilities a lack of diversified exports, severe demographic and health problems, and, in Medvedev s own words, an urgent need for modernization.

So the end of this severe global recession will be closer at the end of this year than it is now, the recovery will be anemic rather than robust in advanced economies, and there is a rising risk of a double dip recession.

The United States is experiencing a mortgage loss driven financial meltdown that would, with an ordinary monetary policy, send it into a severe recession or a depression.

Among economists there is a strong feeling that the world economy is bouncing back from deep recession, and that the current crisis, although severe, is an aberration.

The only reason the US trade deficit is falling is that the country remains in a severe recession, causing US imports and exports to collapse in parallel.

NEW YORK The latest macroeconomic news from the United States, other advanced economies, and emerging markets confirms that the global economy will face a severe recession in 2009.

Second, job losses will lead to a more protracted and severe housing recession, as joblessness and falling income are key factors in determining delinquencies on mortgages and foreclosure.

WASHINGTON, DC The world economy has just been through a severe recession marked by financial turmoil, large scale destruction of wealth, and declines in industrial production and global trade.

We already have a full blown global recession. Unless governments get ahead of the problem, we risk a severe worldwide downturn unlike anything we have seen since the 1930 s.

The severe recession, combined with the financial crisis during 2008 2009, worsened developed countries fiscal positions, owing to stimulus spending, lower tax revenues, and backstopping and ring fencing of their financial sectors.

Imagining Recession

Recession Geopolitics

Recession Insurance

Official forecasts for Russian GDP growth in 2009 remain positive, but most analysts, including government officials, are bracing for a severe recession which, indeed, appears to have started in the fourth quarter of 2008.

China may look like a white knight for Greece, which remains mired in fiscal crisis and severe recession but this was also a perfect chance for China to go bargain hunting around the world.

Japan, arguably the hardest hit by the global recession, faces an increasingly severe moral, demographic, and governance crisis, highlighted by its recent loss, to China, of its status as the world s second largest economy.

This has led some economists to question whether the euro zone is a good idea at all, and to predict that, when confronted with a test of a severe differential recession, it will break apart.

America s Political Recession

If this was attempted, Japan would be condemned to sustained deflation and recession. Even a modest step in that direction the sales tax increase of April 2014, for example produced a severe setback to economic recovery.

Finally, the International Monetary Fund, the European Union, and other multilateral institutions should provide generous lender of last resort support in order to prevent a severe deflationary recession in countries that need private and public deleveraging.

Still, given a severe financial crisis, declining home prices, and a credit crunch, the US is facing its longest and deepest recession in decades, dashing any hope of a soft landing for the rest of the world.

Unfortunately, the Great Recession of 2008 2009 is far from being a normal global recession.

The recession was inevitable.

The Recession Dating Game