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Boom, Bust, and Recovery in the World Economy

NEW YORK – This global economic crisis will go down in history as Greenspan’s Folly. This is a crisis made mainly by the United States Federal Reserve Board during the period of easy money and financial deregulation from the mid-1990’s until today.

This easy-money policy, backed by regulators who failed to regulate, created unprecedented housing and consumer credit bubbles in the US and other countries, notably those that shared America’s policy orientation. The bubble has now burst, and these economies are heading into a steep recession.