The '''Great Trade Collapse,''' a consequence of the 2008 financial crisis, occurred between the third quarter of 2008 and the second quarter of 2009.<ref>{{Cite web |url=http://voxeu.org/epubs/cepr-reports/great-trade-collapse-causes-consequences-and-prospects |title=The Great Trade Collapse: Causes, Consequences and Prospects by Richard Baldwin in 2009 |access-date=2017-06-29 |archive-date=2017-07-02 |archive-url=https://web.archive.org/web/20170702232437/http://voxeu.org/epubs/cepr-reports/great-trade-collapse-causes-consequences-and-prospects |url-status=dead }}</ref> During this time, world GDP dropped by 1% and world trade dropped by 10%. This drop in global trade was synchronized<ref> [http://voxeu.org/article/great-synchronisation-tracking-trade-collapse-high-frequency-data The Great Synchronisation: tracking the trade collapse with high-frequency data by Joaquim Oliveira Martins and Sónia Araújo in 2009]</ref> across almost every country in the world. Researchers cite three main reasons for the collapse: sudden drops in demand and supply, credit constraint, and a stifled global value chain.
==See also== *Financial crisis
== References == {{reflist}}
Category:Great Recession
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