Comparing and contrasting American recessions (1980-2007)

The word recession is in the mind of all Americans in time of a distressed economy. But, what exactly happens when we the economy experiences a downturn? Recessions over time make up the business cycles of a country's economy. Nowadays, business cycles spread worldwide due to globalization, trade liberalization and a faster capital movement. This paper emphasizes in the last three major recessions experienced in the United States. Basing The Great Depression as turning point in the study of Economics, a comparison is drawn to determine the similarities and differences between the recessions in the last three decades. This paper examines the abnormal interest rates of the 1980's, the so called dot-com era and the Great Recession. It analyzes its causes, consequences and how each event is correlated to the next. In conclusion, this paper utilizes the data and findings to determine the pattern(s) between recessions and to predict future fluctuations in our (American) economy