Recession is Economic growth decrease, condition of trade starts to sluggish, sale goods reduced. Many entrepreneurs make starting a production decrease due to lack of capital. As a result, they lay off workers. Use of resources and factors of production decline, the purchasing power of people less. The economic recession can be measured by criteria that economists generally use is If the GDP decreased two quarters consecutively treated as the economic recession. USA European economic zone and Japan it will be like this. But if a recession of the world economy. International Monetary Fund or IMF has given a definition of the term global recession is global GDP, or all countries combined. With the expansion of less than 3 percent. (Using Purchasing Power Parity or PPP indicators.) In this essay, we will study how to solve the problems of the central bank by studying the economic recession in the United States and the European Union
The economic crisis in the United States began in mid-2007 and seen the result more violent in 2008 sometimes called Hamburger Crisis due to the economic crisis began to occur at the United States and continue to affect around the world sometimes called Sub-Prime Crisis. Because of problem management of Sub-Prime Mortgage error, and the results of the oversight group Investment Banking weak. Until causing the problem of the liquidity shortage, and threaten the stability of financial institutions. As a result, the power and the reliability of the United States and other Western countries decreased.