Coping-Up with the Global Economic Recession : A Study of USA, UK, India and China

The main objective of this paper is to study the global economic recession that started from the sub-prime crisis in the USA. In addition, it also undertakes an analysis of the history of recessions in the world since the recession of 1797. Our research finds that there have been as many as 18 recessionary phases since then. The study also observes that most of the recessionary phases did originate in the USA and the UK. While discovering whether there is any association between the duration of a recession (dependent variable) and the number of years since the start of last recession, it is found that the relationship between the two factors is not significant. The paper also undertakes the comparatively analysis of the stimulus packages announced by the USA, UK, India and China governments in order to cope-up with recession. The study concludes that the stimulus packages announced by the USA have been company-specific to some extent while UK, India and China have announced plans to revive the economy at the macro-level. USA has tried to protect its companies by giving them package, which may not be the right signal for the global economy, which is almost in agreement against the theory of protectionism