When there is a decline in the global growth up to three percent then it is referred as a global recession. The estimation of the global recession is done by the International Monetary Fund. The economic recession history of the world shows that there is a global recession in the gap of normally eight to ten years. The economists at the International Monetary Fund state that if there is a deceleration in the global growth up to three percent or even less than that, then it should be deemed as global recession. According to the history of recessions maintained by the International Monetary Fund, the recessions during the last thirty years showed a negative or zero output growth in the international per capita income. After the great Depression in 1985, three more periods could be referred to be global recession in the recession’s history i.e. recession of 1990 to 1993, 1998 recession and recession of 2001 to 2002.

Right from the Great Depression, the recession has become a natural part of the history of America’s business cycle. In the year 2008-2009, America is also facing a recession. The Gross Domestic Product of the country dropped up to one percent. The Subprime Mortgage Crisis is caused due to the current inflation in the US. This crisis also headed towards a credit crisis in most banks of the world. Due to this the joblessness level has raised up to nine percent. America also faced recession in the year 2001. This recession lasted for only eight months. The main cause of this recession was the Y2K jolt that also led towards a kaput in the internet trades. This recession was further motivated by the 9/11 massacre. For two non successive quarters, there was a negative growth in the American economy. Even, the unemployment reached to an alarming level.

The recession of 1990-1991 lasted for eight months. Basically it was caused due to the crisis in savings and loan. This affected the Gross Domestic Product negatively. The recession of the 1980 to 1982 is basically referred as two recessions. The recession for the initial six months was caused due to the restriction of Iranian oil, which affected the US oil supply negatively. The interest rates were increased by the FED in order to struggle with the inflation caused due to the rise in oil prices. This reduced the business spending, in turn. This also resulted in a negative Gross Domestic Product for twelve quarters, throughout the phase. The economy dropped excessively in the year 1980. Recession in US was also noticed during 1973-1975, 1970, 1960, 1957, 1953, 1949 and 1945.