Financial Upheavals Assignment Example | Topics and Well Written Essays - 250 words

Financial Upheavals - Assignment Example On the other hand, the Great Recession of 2008 is the most recent economic downturn in country, the pangs of which are being felt even today. Both these financial upheavals share similarities in terms of their causes and consequences. They led to extensive loan foreclosures, bank failures, high unemployment rates and a slump in manufacturing sector. The reason for the panic of 1819 can be attributed to the economic system of the United States (Rothbard 2002). It was the panic of 1819 that brought the grand economic expansion following the War of 1812 to an end. Inflation, debtors’ relief which was invariably tied with monetary schemes and a protective tariff played a pivotal role in creating the situation of panic in the country at that time. On the other hand, the onset of the Recession of 2008 can be attributed to complex and interlinked factors. Sub-prime lending, loose monetary policy, global imbalances and lax financial regulation were responsible for the latest financial upheaval that has had the entire world reeling. Proposal is hereby made to write a detailed paper which will compare and contrast these two historic financial upheavals; the earliest and the latest to have rocked the United States of America with special emphasis on the role of the monetary policy in each