FROM A MODEL OF GROWTH TO A GLOBAL CRISIS

The paper analyses the unprecedented coordinated actions to suppress the "free fall" of the United States and world economy. It then shows the role of monetary and fiscal policy of governments. The article reveals are the fundamental similarities and differences between the Great Depression of the 30-ies of the last century and the current Great Recession. It indicates the controversial results of the policies in the United States and the European Union and the emerging trend towards deflation.