Editing 2000s (section)

== Economics ==
{{Main|2000s in economics}}

The most significant evolution of the 2000s in the economic landscape was the long-time predicted breakthrough of economic giant [[Economy of China|China]], whose GDP grew from 1.21 trillion to 5.1 trillion (in 2022 USD).<ref>{{Cite web |title=GDP (current US$) – China {{!}} Data |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2021&locations=CN&start=1960 |access-date=2023-01-15 |website=data.worldbank.org |archive-date=January 15, 2023 |archive-url=https://web.archive.org/web/20230115104944/https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2021&locations=CN&start=1960 |url-status=live}}</ref> To a lesser extent, India also benefited from an economic boom (growing from 438.39 billion to 1.34 trillion)<ref>{{cite news |title=India Reaps Benefits of Economic Boom |date=November 2, 2006 |work=CNN |url=http://edition.cnn.com/2006/WORLD/asiapcf/11/01/india.economy/index.html |access-date=November 30, 2011 |archive-url=https://web.archive.org/web/20131004221514/http://edition.cnn.com/2006/WORLD/asiapcf/11/01/india.economy/index.html |archive-date=October 4, 2013}}</ref> which saw the two most populous countries becoming an increasingly dominant economic force.<ref>{{cite web |title=A New World Economy |work=Bloomberg Business Week |date=August 22, 2005 |access-date=June 1, 2011 |url=http://www.businessweek.com/magazine/content/05_34/b3948401.htm |archive-url=https://web.archive.org/web/20110522173400/http://www.businessweek.com/magazine/content/05_34/b3948401.htm |archive-date=May 22, 2011}}</ref> The rapid catching-up of emerging economies with developed countries sparked some protectionist tensions during the period and was partly responsible for an increase in energy and food prices at the end of the decade. The economic developments in the latter third of the decade were dominated by a worldwide economic downturn, which started with the [[subprime mortgage crisis|crisis in housing and credit]] in the United States in late 2007, and led to the bankruptcy of major banks and other financial institutions.<ref>{{cite web |title=Iceland goes bankrupt |work=BusinessWeek |first=Michael |last=Mandel |date=October 10, 2008 |url=http://www.businessweek.com/the_thread/economicsunbound/archives/2008/10/iceland_goes_ba.html |archive-url=https://web.archive.org/web/20081013190640/http://www.businessweek.com/the_thread/economicsunbound/archives/2008/10/iceland_goes_ba.html |archive-date=October 13, 2008 |url-status=dead |access-date=July 19, 2009}}</ref> The outbreak of the [[2008 financial crisis]] sparked a global recession, beginning in the United States and affecting most of the industrialized world.
* A study by the World Institute for Development Economics Research at [[United Nations University]] reports that the richest 1% of adults alone owned 40% of global assets in the year 2000. [[The World's Billionaires|''The three'' richest people]] possess more [[finance|financial]] assets than the lowest 48 nations combined.{{citation needed|date=May 2021}}
The combined wealth of the "10 million dollar millionaires" grew to nearly $41 trillion in 2008.<ref>"[http://www.thaindian.com/newsportal/world-news/growth-of-millionaires-in-india-fastest-in-world_10064367.html Growth of millionaires in India fastest in world]". Thaindian News. June 25, 2008. {{webarchive|url=https://web.archive.org/web/20130623172139/http://www.thaindian.com/newsportal/world-news/growth-of-millionaires-in-india-fastest-in-world_10064367.html|date=June 23, 2013 }}</ref>
* The [[sale of UK gold reserves, 1999–2002]] was a policy pursued by [[HM Treasury]] when [[gold]] prices were at their lowest in 20 years, following an extended [[bear market]]. The period itself has been dubbed by some commentators as the '''Brown Bottom''' or '''Brown's Bottom'''.<ref name="times">{{cite news |url=http://www.timesonline.co.uk/tol/news/politics/article1655001.ece |title=Goldfinger Brown's £2 billion blunder in the bullion market |work=The Times |date=15 April 2007 |access-date=February 19, 2014 |location=London |archive-url=https://web.archive.org/web/20080511163250/http://www.timesonline.co.uk/tol/news/politics/article1655001.ece |archive-date=May 11, 2008}}</ref><ref>{{cite news |author=Investing |url=https://www.telegraph.co.uk/finance/personalfinance/investing/3849910/The-outlook-for-gold.html |title=The outlook for gold |work=The Daily Telegraph |date=December 19, 2008 |access-date=February 19, 2014 |location=London |archive-url=https://web.archive.org/web/20140326144415/http://www.telegraph.co.uk/finance/personalfinance/investing/3849910/The-outlook-for-gold.html |archive-date=March 26, 2014}}</ref><ref>{{cite web |author=Walsoft |url=http://www.marketoracle.co.uk/Article670.html |title=The Gold Bull Market Remembers How Gordon Brown Sold Half of Britains Reserves at the Lowest Price, The Market Oracle, Clive Maund, 1 April 2007 |publisher=Marketoracle.co.uk |date=April 1, 2007 |access-date=February 19, 2014 |archive-url=https://web.archive.org/web/20131027205114/http://www.marketoracle.co.uk/Article670.html |archive-date=October 27, 2013}}</ref><ref>{{cite web |url=http://news.goldseek.com/GoldSeek/1257404820.php |title=The Significance of the IMF-RBI Gold Sales, Tim Iacono, GoldSeek.com, 5 November 2009 |publisher=News.goldseek.com |date=November 5, 2009 |access-date=February 19, 2014 |archive-url=https://web.archive.org/web/20140224212701/http://news.goldseek.com/GoldSeek/1257404820.php |archive-date=February 24, 2014}}</ref><ref>{{Cite web |url=http://www.golddealer.com/GoldGlitters2008.pdf |archive-url=https://web.archive.org/web/20100103221316/http://www.golddealer.com/GoldGlitters2008.pdf |url-status=dead |title=In 2008, Gold Should Glitter, James Turk, ''SFO magazine'', February 2007. |archive-date=January 3, 2010}}</ref><ref>{{cite web |first=Warren |last=Bevan |url=http://www.gold-eagle.com/editorials_08/bevan062309.html |title=China & IMF Gold Sales; The Real Story, Warren Bevan, gold-eagle.com, 23 June 2009 |publisher=Gold-eagle.com |date=June 23, 2009 |access-date=February 19, 2014 |archive-url=https://web.archive.org/web/20130312074543/http://www.gold-eagle.com/editorials_08/bevan062309.html |archive-date=March 12, 2013}}</ref>

The period takes its name from [[Gordon Brown]], the then UK [[Chancellor of the Exchequer]] (who later became [[Prime Minister of the United Kingdom|Prime Minister]]), who decided to sell approximately half of the UK's [[gold reserve]]s in a series of auctions. At the time, the UK's gold reserves were worth about US$6.5 billion, accounting for about half of the UK's US$13 billion [[Currency|foreign currency]] net reserves.<ref name="hmt">{{cite web |url=http://hm-treasury.gov.uk/d/GoldReserves.PDF |date=October 2002 |title=Review of the sale of part of the UK gold reserves |publisher=[[HM Treasury]] |archive-url=https://web.archive.org/web/20130421115541/http://www.hm-treasury.gov.uk/d/goldreserves.pdf |archive-date=April 21, 2013}}</ref>
* The 2001 [[AOL]] merger with [[Time Warner]] (a deal valued at $350 billion; which was the largest merger in American business history)<ref>{{cite news |last=Arango |first=Tim |title=How the AOL-Time Warner Merger Went So Wrong |url=https://www.nytimes.com/2010/01/11/business/media/11merger.html?pagewanted=all&_r=0 |work=The New York Times Company |access-date=February 26, 2013 |date=January 11, 2010 |archive-url=https://web.archive.org/web/20130610070755/http://www.nytimes.com/2010/01/11/business/media/11merger.html?pagewanted=all&_r=0 |archive-date=June 10, 2013}}</ref> was 'the biggest mistake in corporate history', believes [[Time Warner]] chief [[Jeff Bewkes]]<ref>{{cite news |last1=Barnett |first1=Emma |last2=Andrews |first2=Amanda |title=AOL merger was 'the biggest mistake in corporate history', believes Time Warner chief Jeff Bewkes |url=https://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/8031227/AOL-merger-was-the-biggest-mistake-in-corporate-history-believes-Time-Warner-chief-Jeff-Bewkes.html |access-date=February 26, 2013 |location=London |date=September 28, 2010 |archive-url=https://web.archive.org/web/20140122123620/http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/media/8031227/AOL-merger-was-the-biggest-mistake-in-corporate-history-believes-Time-Warner-chief-Jeff-Bewkes.html |archive-date=January 22, 2014}}</ref>
* February 7, 2004 – [[EuroMillions]] transnational lottery, launched by France's [[Française des Jeux (lottery)|Française des Jeux]], Spain's Loterías y Apuestas del Estado, and the United Kingdom's Camelot.
* In 2007, it was reported that in the UK, one pound in every seven spent went to the [[Tesco]] grocery and general merchandise retailer.<ref>{{cite news |last=Wallop |first=Harry |url=https://www.telegraph.co.uk/news/uknews/1548742/1-in-every-seven-now-spent-in-Tesco.html |title=£1 in every seven now spent in Tesco |newspaper=Telegraph |date=April 16, 2007 |access-date=February 16, 2013 |location=London |archive-url=https://web.archive.org/web/20140429192811/http://www.telegraph.co.uk/news/uknews/1548742/1-in-every-seven-now-spent-in-Tesco.html |archive-date=April 29, 2014}}</ref>
* On October 9, 2007, the [[Dow Jones Industrial Average]] closed at the record level of '''14,164.53'''. Two days later on October 11, the Dow would trade at its highest intra-day level ever, at the '''14,198.10''' mark.<ref>[https://www.google.com/finance/?cid=983582&startdate=Oct+8,+2007&enddate=Oct+12,+2007 ''Dow Jones Industrial Average Historical Prices''] . [[Google Finance]]. Retrieved March 14, 2010.</ref> In what would normally take many years to accomplish; numerous reasons were cited for the Dow's extremely rapid rise from the 11,000 level in early 2006, to the 14,000 level in late 2007. They included future possible [[takeover]]s and [[Mergers and acquisitions|mergers]], healthy earnings reports particularly in the tech sector, and moderate [[inflation]]ary numbers; fueling speculation the Federal Reserve would not raise [[interest rate]]s. Roughly [[Par value|on par]] with the 2000 record when adjusted for inflation, this represented the final high of the cyclical bull. The index closed 2007 at 13,264.82, a level it would not surpass for nearly five years.

=== Economic growth in the world ===
{{See also|List of countries by GDP (nominal)|List of countries by GDP (PPP)|List of countries by past and projected GDP (nominal)}}
[[File:Lujiazui Skyline from Bund.jpg|thumb|Shanghai becomes a symbol of the recent [[Economic expansion|economic boom]] of China.]]

Between 1999 and 2009, according to the [[World Bank]] statistics for GDP:<ref>{{cite web |url=http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf |title=The World Bank: World Development Indicators database, 1 July 2009. Gross domestic product (2008). |date=January 7, 2009 |publisher=World Bank |access-date=October 7, 2009 |archive-url=https://web.archive.org/web/20090912122439/http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP.pdf |archive-date=September 12, 2009}}</ref><ref>{{cite web |url=http://malchish.org/lib/economics/vvp.pdf |title=The World Bank: World Development Indicators database, 8 February 2000. Gross domestic product (2008). |date=January 7, 2009 |publisher=World Bank |access-date=December 27, 2009 |archive-url=https://web.archive.org/web/20110612030215/http://malchish.org/lib/economics/vvp.pdf |archive-date=June 12, 2011 |url-status=dead}}</ref>
* The [[world economy]] by [[nominal GDP]] almost doubled in size from U.S. $30.21 trillion in 1999 to U.S. $58.23 trillion in 2009. This figure is not adjusted for inflation. By [[Purchasing power parity|PPP]], world GDP rose 78%, according to the IMF. But inflation adjusted nominal GDP rose only 42%, according to IMF constant price growth rates.<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/weorept.aspx?pr.x=58&pr.y=7&sy=1999&ey=2009&scsm=1&ssd=1&sort=country&ds=.&br=1&c=001,110,163,119,203,123,998,200,904,901,505,511,406,603,205&s=NGDP_RPCH,PPPGDP&grp=1&a=1 |title=IMF WEO Database: Report for Selected Country Groups and Subjects, April 2010. |date=April 2010 |publisher=International Monetary Fund |access-date=October 2, 2010 |archive-url=https://web.archive.org/web/20121018070144/http://www.imf.org/external/pubs/ft/weo/2010/01/weodata/weorept.aspx?pr.x=58&pr.y=7&sy=1999&ey=2009&scsm=1&ssd=1&sort=country&ds=.&br=1&c=001%2C110%2C163%2C119%2C203%2C123%2C998%2C200%2C904%2C901%2C505%2C511%2C406%2C603%2C205&s=NGDP_RPCH%2CPPPGDP&grp=1&a=1 |archive-date=October 18, 2012 |url-status=dead}}</ref> The following figures are not inflation adjusted nominal GDP and should be interpreted with extreme caution:
* The United States (U.S. $14.26 trillion) retained its position of possessing the world's largest economy. However, the size of its contribution to the total global economy dropped from 28.8% to 24.5% by nominal price or a fall from 23.8% to 20.4% adjusted for purchasing power.
* Japan (U.S. $5.07 trillion) retained its position of possessing the second largest economy in the world, but its contribution to the world economy also shrank significantly from 14.5% to 8.7% by nominal price or a fall from 7.8% to 6.0% adjusted for purchasing power.
* China (U.S. $4.98 trillion) went from being the sixth largest to the third largest economy, and in 2009 contributed to 8.6% of the world's economy, up from 3.3% in 1999 by nominal price or a rise from 6.9% to 12.6% adjusted for purchasing power.
* Germany (U.S. $3.35 trillion), France (U.S. $2.65 trillion), United Kingdom (U.S. $2.17 trillion) and Italy (U.S. $2.11 trillion) followed as the 4th, 5th, 6th and 7th largest economies, respectively in 2009.
* Brazil (U.S. $1.57 trillion) retained its position as the 8th largest economy, followed by Spain (U.S. $1.46 trillion), which remained at 10th.
* Other major economies included Canada (U.S. $1.34 trillion; 10th, down from 9th), India (U.S. $1.31 trillion; remaining at 11th from 12th), Russia (U.S. $1.23 trillion; from 16th to 12th) Mexico (U.S. $875 billion; 14th, down from 11th), Australia (U.S. $925 billion; from 14th to 13th) and South Korea (U.S. $832 billion; 15th, down from 13th).
* In terms of [[purchasing power parity]] in 2009, the ten largest economies were the United States (U.S. $14.26 trillion), China (U.S. $9.10 trillion), Japan (U.S. $4.14 trillion), India (U.S. $3.75 trillion), Germany (U.S. $2.98 trillion), Russia (U.S. $2.69 trillion), United Kingdom (U.S. $2.26 trillion), France (U.S. $2.17 trillion), Brazil (U.S. $2.02 trillion), and Italy (U.S. $1.92 trillion).<ref>{{cite web |url=http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP_PPP.pdf |title=Gross domestic product 2009, PPP |date=June 1, 2011 |access-date=February 13, 2012 |archive-url=https://web.archive.org/web/20140209081011/http://siteresources.worldbank.org/DATASTATISTICS/Resources/GDP_PPP.pdf |archive-date=February 9, 2014}}</ref><ref>{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2010/02/weodata/weorept.aspx?pr.x=33&pr.y=7&sy=1999&ey=2009&scsm=1&ssd=1&sort=country&ds=.&br=1&c=924,158,111&s=PPPSH&grp=0&a= |title=5. Report for Selected Countries and Subjects |publisher=IMF.org |access-date=February 13, 2012 |archive-url=https://web.archive.org/web/20121018121622/http://www.imf.org/external/pubs/ft/weo/2010/02/weodata/weorept.aspx?pr.x=33&pr.y=7&sy=1999&ey=2009&scsm=1&ssd=1&sort=country&ds=.&br=1&c=924%2C158%2C111&s=PPPSH&grp=0&a= |archive-date=October 18, 2012 |url-status=dead}}</ref>
* The average house price in the UK, increased by 132% between the fourth quarter of 2000, and 91% during the decade; but the average salary increased only by 40%.<ref>{{cite news |title=House prices almost doubled in a decade |url=https://www.theguardian.com/money/blog/2011/jan/31/house-prices-doubled-decade |access-date=February 26, 2013 |location=London |first=Jill |last=Insley |date=January 31, 2011 |archive-url=https://web.archive.org/web/20120128165317/http://www.guardian.co.uk/money/blog/2011/jan/31/house-prices-doubled-decade |archive-date=January 28, 2012}}</ref>

=== Globalization and its discontents ===
{{See also|Globalization#Effects of globalization|Offshore outsourcing#Source of conflict|Business process outsourcing to India}}
[[File:An Indian call center.jpg|thumb|upright|[[Offshore outsourcing]] of jobs, such as this [[call centre]] in India, significantly increased during the decade as many [[multinational corporation]]s moved their [[manufacturing]] and [[Service (economics)|services]] from [[Western world|western countries]] to [[Developing country|developing countries]].]]
The removal of [[Trade barrier|trade and investment barriers]], the growth of [[domestic market]]s, [[Purchasing power parity|artificially low currencies]], the [[History of education#Recent world-wide trends|proliferation of education]], the rapid development of [[high tech]] and [[information system]]s industries and the growth of the [[world economy]] lead to a significant growth of [[offshore outsourcing]] during the decade as many [[multinational corporation]]s significantly increased [[subcontractor|subcontracting]] of [[manufacturing]] (and increasingly, [[Service (economics)|services]]) across national boundaries in [[developing countries]] and particularly in China and India, due to [[Outsourcing#Reasons|many benefits]] and mainly because the two countries which are the two most populous countries in the world provide huge pools from which to find talent and as because both countries are low cost sourcing countries. As a result of this growth, many of these developing countries accumulated [[capital (economics)|capital]] and started investing abroad. Other countries, including the [[United Arab Emirates]], Australia, Brazil and Russia, benefited from increased demand for their mineral and energy resources that global growth generated. The hollowing out of manufacturing was felt in Japan and parts of the United States and Europe which had not been able to develop successful innovative industries. Opponents point out that the practice of offshore outsourcing by countries with higher wages leads to the reduction of their own domestic employment and domestic investment. As a result, many customer service jobs as well as jobs in the information technology sectors ([[data processing]], [[computer programming]], and [[technical support]]) in countries such as the United States and the United Kingdom have been or are potentially affected.

While [[International trade|global trade]] rose in the decade (partially driven by China's entry into the [[World Trade Organization|WTO]] in 2001), there was little progress in the multilateral trading system. [[International trade]] continued to expand during the decade as emerging economies and developing countries, in particular China and South-Asian countries, benefited low wages costs and most often undervalued currencies. However, global negotiations to reduce tariffs did not make much progress, as member countries of the [[World Trade Organization]] did not succeed in finding agreements to stretch the extent of [[free trade]].<ref>[[EFE]] [http://www.abc.es/20080729/economia-economia/fracasan-negociaciones-ronda-doha-200807291828.html Fracasan las negociaciones de la Ronda de Doha para liberalizar el comercio] July 28, 2008, [[ABC (Spain)]] {{webarchive|url=https://web.archive.org/web/20120402234924/http://www.abc.es/20080729/economia-economia/fracasan-negociaciones-ronda-doha-200807291828.html|date=April 2, 2012 }}</ref> The [[Doha Development Round|Doha Round]] of negotiations, launched in 2001 by the WTO to promote development, failed to be completed because of growing tensions between regional areas. Nor did the [[World Trade Organization Ministerial Conference of 2003|Cancún Conference]] in 2003 find a consensus on [[Trade in services|services trade]]<ref name="Cancún">''[[El Mundo (Spain)|El Mundo]]'', [http://www.elmundo.es/papel/2003/09/16/economia/1474737.html "El fracaso de la Cumbre de la OMC muestra la fortaleza negociadora de los países pobres"] September 16, 2003 {{dead link|date=June 2016|bot=medic}}{{cbignore|bot=medic}}</ref> and [[Agricultural subsidy|agricultural subsidies]].<ref>[[Food and Agriculture Organization]] [http://www.fao.org/newsroom/es/news/2006/1000375/index.html "La Ronda de Doha necesita un cambio de orientación"] {{Webarchive|url=https://web.archive.org/web/20121213200550/http://www.fao.org/newsroom/es/news/2006/1000375/index.html |date=December 13, 2012 }} August 8, 2006 "El fracaso de la Ronda de Doha de negociaciones para liberalizar el comercio internacional se debe sobre todo a la lucha para obtener ventajas en los mercados agrícolas por parte de las grandes potencias, empresas y lobbies"</ref>

The comparative rise of China, India, and other developing countries also contributed to their growing clout in [[International marketing|international forums]]. In 2009, it was determined that the [[G20]], originally a forum of finance ministers and central bank governors, would replace the [[G8]] as the main economic council.

'''[[2007 Chinese export recalls]]''' – in 2007, a series of product recalls and import bans were imposed by the product safety institutions of the [[United States]], [[Canada]], the [[European Union]], [[Australia]] and [[New Zealand]] against products manufactured in and exported from the [[mainland China|mainland]] of the [[China|People's Republic of China]] (PRC) because of numerous alleged [[Consumer protection|consumer safety]] issues.

Events in the confidence crisis included recalls on consumer goods such as [[2007 pet food recalls|pet food]], [[toy]]s, [[toothpaste]], [[lipstick]], and a ban on certain types of [[seafood]]. Also included are reports on the poor crash safety of Chinese automobiles, slated to enter the American and European markets in 2008. This created adverse consequences for the confidence in the safety and quality of mainland Chinese manufactured goods in the global economy.

=== The age of turbulence ===
[[File:Birmingham Northern Rock bank run 2007.jpg|thumb|People queuing outside a [[Northern Rock]] bank branch in [[Birmingham]], United Kingdom on September 15, 2007, to [[bank run|withdraw their savings]] because of the [[Subprime mortgage crisis]].]]
The decade was marked by two financial and economic crises. In 2001, the [[Dot-com bubble]] burst, causing turmoil in financial markets and a [[early 2000s recession|decline in economic activity]] in the developed economies, in particular in the United States.<ref>BBC Mundo, [http://news.bbc.co.uk/hi/spanish/business/newsid_1666000/1666319.stm Se contrae la economía mundial] November 21, 2001 {{webarchive|url=https://web.archive.org/web/20121202175936/http://news.bbc.co.uk/hi/spanish/business/newsid_1666000/1666319.stm|date=December 2, 2012 }}</ref> However, the impact of the crisis on the activity was limited thanks to the intervention of the central banks, notably the U.S. [[Federal Reserve]] System. Indeed, [[Alan Greenspan]], leader of the Federal Reserve until 2006, cut the interest rates several times to avoid a severe recession,<ref>BBC Mundo, [http://news.bbc.co.uk/hi/spanish/business/newsid_1685000/1685410.stm ¿Recesión global?], September 8, 2001 {{webarchive|url=https://web.archive.org/web/20121203020449/http://news.bbc.co.uk/hi/spanish/business/newsid_1685000/1685410.stm|date=December 3, 2012 }}</ref> allowing an economic revival in the U.S.<ref>[[Agence France Presse]] [https://archive.today/20121229212959/http://www.lanacion.com.ar/nota.asp?nota_id=680131 Greenspan dijo que las tasas se mantienen bajas], [[La Nación]], February 16, 2005</ref>

As the Federal Reserve maintained low interest rates to favor economic growth, [[2000s United States housing bubble|a housing bubble]] began to appear in the United States. In 2007, the rise in interest rates and the collapse of the housing market caused a wave of [[Default (finance)|loan payment failures]] in the U.S. The subsequent [[subprime mortgage crisis]] caused the [[2008 financial crisis]], because the subprime mortgages had been [[Securitization|securitized]] and sold to international banks and investment funds. Despite the extensive intervention of central banks, including partial and total nationalization of major European banks,<ref>"European banking collapse including nationalisation of three banks", ''Credit Writedown'', Ed Harrison, September 29, 2008. Retrieved January 11, 2011, [http://www.creditwritedowns.com/2008/09/european-banking-collapse-including.html Creditwritedowns.com] {{webarchive|url=https://web.archive.org/web/20120307235238/http://www.creditwritedowns.com/2008/09/european-banking-collapse-including.html|date=March 7, 2012 }}</ref><ref>"Anglo Irish Bank Shares Suspended after Nationalization", The New York Times, January 16, 2009. Retrieved January 11, 2011, [https://www.nytimes.com/2009/01/16/business/worldbusiness/16iht-15punt.19424614.html NYtimes.com] {{webarchive|url=https://web.archive.org/web/20150402181013/http://www.nytimes.com/2009/01/16/business/worldbusiness/16iht-15punt.19424614.html|date=April 2, 2015 }}</ref> the crisis of sovereign debt became particularly acute, first in [[2008–2011 Icelandic financial crisis|Iceland]], though as events of the early 2010s would show, it was not an isolated European example. Economic activity was [[Great Recession|severely affected]] around the world in 2008 and 2009,<ref>[[ABC (Spain)|ABC Noticias]], [http://especiales.abc.es/crisis-economica/ The economic crisis] {{webarchive|url=https://web.archive.org/web/20130515213610/http://especiales.abc.es/crisis-economica/|date=May 15, 2013 }}</ref> with [[2008–2010 automotive industry crisis|disastrous consequences for carmakers]].<ref>[[Reuters]] [http://www.eluniverso.com/2008/11/15/0001/14/127CB76112CC4112B844BB6966CA769E.html Se extiende crisis de la industria automotriz], November 15, 2008, [[El Universo]] {{webarchive|url=https://web.archive.org/web/20120308111853/http://www.eluniverso.com/2008/11/15/0001/14/127CB76112CC4112B844BB6966CA769E.html|date=March 8, 2012 }}</ref>

In 2007, the UK's [[Chancellor of the Exchequer]] [[Gordon Brown]], delivered his final Mansion House speech as Chancellor before he moved into Number 10. Addressing financiers: "A new world order has been created", Everyone needed to follow the city's "great example", "an era that history will record as the beginning of a new Golden Age".<ref>{{cite news |last=Rawnsley |first=Andrew |title=A golden age, and other things they wish they'd never said |url=https://www.theguardian.com/commentisfree/2008/oct/19/gordonbrown-davidcameron-economic-policy |access-date=February 14, 2013 |newspaper=The Observer |date=October 19, 2008 |location=London |archive-url=https://web.archive.org/web/20090207022026/http://www.guardian.co.uk/commentisfree/2008/oct/19/gordonbrown-davidcameron-economic-policy |archive-date=February 7, 2009}}</ref>

Reactions of governments in all developed and developing countries against the economic slowdown were largely inspired by [[keynesian economics]]. The end of the decade was characterized by a [[2008–2009 Keynesian resurgence|Keynesian resurgence]],<ref>[[ABC (Spain)|ABC Noticias]] [http://www.abc.es/hemeroteca/historico-22-02-2009/abc/Economia/la-fascinacion-del-keynesianismo-esperemos-que-sin-resaca_913291632123.html La fascinación del keynesianismo, esperemos que sin resaca] February 22, 2009 {{webarchive|url=https://web.archive.org/web/20120402234911/http://www.abc.es/hemeroteca/historico-22-02-2009/abc/Economia/la-fascinacion-del-keynesianismo-esperemos-que-sin-resaca_913291632123.html|date=April 2, 2012 }}</ref> while the influence and media popularity of left-wing economists<ref>[[El País]], [http://www.elpais.com/articulo/economia/Stiglitz/Krugman/reclaman/globalizacion/gobernada/reducir/desigualdades/elpepieco/20040925elpepieco_12/Tes Stiglitz y Krugman reclaman una globalización 'gobernada' para reducir las desigualdades] September 25, 2004</ref> [[Joseph Stiglitz]] and [[Paul Krugman]] (Nobel Prize recipients in 2001 and 2008, respectively) did not stop growing during the decade.<ref>[[El Mundo (Spain)|El Mundo]] [http://www.elmundo.es/mundodinero/2004/06/23/Noti20040623115744.html Paul Krugman, un polémico economista que marca tendencia] {{webarchive|url=https://web.archive.org/web/20130605213014/http://www.elmundo.es/mundodinero/2004/06/23/Noti20040623115744.html|date=June 5, 2013 }}</ref> Several international summits were organized to find solutions against the economic crisis and to impose greater control on the financial markets. The [[G20]] became in 2008 and 2009 a major organization, as leaders of the member countries held two major summits in [[2008 G20 Washington summit|Washington in November 2008]] and in [[2009 G20 London Summit|London in April 2009]] to regulate the banking and financial sectors,<ref>[[La Vanguardia]] [http://www.lavanguardia.es/premium/publica/publica?COMPID=53791830695&ID_PAGINA=22088&ID_FORMATO=9 El G-20 acuerda erigirse en el árbitro de la economía internacional] September 25, 2009 {{dead link|date=July 2011}}</ref> and also succeeding in coordinating their economic action and in avoiding protectionist reactions.

=== Energy crisis ===
{{Main|2000s energy crisis}}
[[File:US oil price in dollars from 1999 to 2008-10-17.svg|thumb|[[World oil market chronology from 2003|Increase in oil prices]]]]
[[File:May2008gasolineCA.jpg|thumb|upright|[[Gasoline and diesel usage and pricing|Gas prices]] in late May 2008]]

From the mid-1980s to September 2003, the inflation-adjusted price of a barrel of crude oil on NYMEX was generally under $25/barrel. During 2003, the price rose above $30, reached $60 by August 11, 2005, and peaked at $147.30 in July 2008.<ref>{{cite web |url=http://tfc-charts.com/chart/QM/W |title=Weekly Commodity Futures Price Chart: Crude Oil EmiNY |publisher=TFC-charts.com |access-date=February 14, 2012 |archive-url=https://web.archive.org/web/20140502013508/http://tfc-charts.com/chart/QM/W |archive-date=May 2, 2014}}</ref> Commentators attributed these price increases to many factors, including reports from the United States Department of Energy and others showing a decline in petroleum reserves, worries over [[peak oil]], Middle East tension, and oil price speculation.<ref>{{cite web |url=http://www.spiegel.de/international/business/0,1518,556519,00.html |first=Moira |last=Herbst |title=Speculation – But Not Manipulation |work=Der Spiegel |date=May 30, 2008 |access-date=February 14, 2012 |archive-url=https://web.archive.org/web/20120518065027/http://www.spiegel.de/international/business/0%2C1518%2C556519%2C00.html |archive-date=May 18, 2012 |url-status=dead}}</ref>

For a time, geopolitical events and natural disasters indirectly related to the global oil market had strong short-term effects on oil prices. These events and disasters included [[North Korea]]n missile tests, the 2006 conflict between Israel and Lebanon, worries over [[Iran]]ian nuclear plants in 2006 and [[Hurricane Katrina]]. By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession. The recession caused demand for energy to shrink in late 2008 and early 2009 and the price plunged as well. However, it surged back in May 2009, bringing it back to November 2008 levels.<ref>{{Cite web |url=https://finance.yahoo.com/news/Oil-prices-jump-to-new-high-apf-15149868.html?.v=10 |archive-url=https://web.archive.org/web/20090509193321/http://finance.yahoo.com/news/Oil-prices-jump-to-new-high-apf-15149868.html?.v=10 |url-status=dead |title=Yahoo Finance |archive-date=May 9, 2009}}</ref>

Many fast-growing economies throughout the world, especially in Asia, also were a major factor in the rapidly increasing demand for [[fossil fuel]]s, which—along with fewer new petroleum finds, greater extraction costs, and political turmoil—forced two other trends: a soar in the [[Price of oil|price of petroleum]] products and a push by governments and businesses to promote the development of [[Environmental technology|environmentally friendly technology]] (known informally as "green" technology). However, a side-effect of the push by some industrial nations to "go green" and utilize [[biofuel]]s was a decrease in the supply of food and a subsequent increase in the price of the same. It partially caused the [[2007–2008 world food price crisis|2007 food price crisis]], which seriously affected the world's poorer nations with an even more severe shortage of food.<ref>Global Policy [http://www.globalpolicy.org/socecon/hunger/general/2008/0303foodcrisis.htm Global Policy Forum, Are We Approaching a Global Food Crisis?] {{webarchive|url=https://web.archive.org/web/20090422035616/http://www.globalpolicy.org/socecon/hunger/general/2008/0303foodcrisis.htm|date=April 22, 2009 }}</ref>

=== The rise of the euro ===
{{See also|Euro|Economic and Monetary Union of the European Union}}
[[File:Euro banknotes 2002.png|thumb|left|The euro became the currency of members of the [[Eurozone]].]]
A common currency for most EU member states, the [[euro]], was established electronically in 1999, officially tying all the currencies of each participating nation to each other. The new currency was put into circulation in 2002 and the old currencies were phased out. Only three countries of the then 15 member states decided not to join the euro (the United Kingdom, Denmark and Sweden). In 2004 the EU undertook a major eastward enlargement, admitting 10 new member states (eight of which were former communist states). Two more, Bulgaria and [[Romania]], joined in 2007, establishing a union of 27 nations.

The euro has since become the second largest [[reserve currency]] and the second most traded currency in the world after the US$.<ref>{{cite web |url=http://www.bis.org/publ/rpfxf07t.pdf |title=Triennial Central Bank Survey 2007&nbsp;– BIS&nbsp;– December 2007 |publisher=BIS |date=December 19, 2007 |access-date=July 25, 2009 |archive-url=https://web.archive.org/web/20130825004633/http://www.bis.org/publ/rpfxf07t.pdf |archive-date=August 25, 2013}}</ref>
{{As of|2009|10}}, with more than €790&nbsp;billion in circulation, the euro was the currency with the highest combined value of banknotes and coins in [[circulation (currency)|circulation]] in the world, having surpassed the US$.<ref group="note">{{As of|2009|10|30|df=US}}:<br />
Total EUR currency (coins and banknotes) in circulation 771.5 (banknotes) + 21.032 (coins) =792.53&nbsp;billion EUR *1.48 (exchange rate) = 1,080&nbsp;billion USD <br />
Total USD currency (coins and banknotes) in circulation 859&nbsp;billion USD
* {{cite web |url=https://stats.ecb.europa.eu/stats/download/bkn_notes_val/bkn_notes_val/bkn_notes_val.pdf |title=Table 2: Euro banknotes, values (EUR billions, unless otherwise indicated, not seasonally adjusted) |access-date=December 13, 2009 |publisher=[[European Central Bank|ECB]] |quote=2009, October: Total banknotes: 771.5 (billion EUR) |archive-url=https://www.webcitation.org/5njSKhMeM?url=https://stats.ecb.europa.eu/stats/download/bkn_notes_val/bkn_notes_val/bkn_notes_val.pdf |archive-date=February 22, 2010 |url-status=dead}}
* {{cite web |url=https://stats.ecb.europa.eu/stats/download/bkn_coins_val/bkn_coins_val/bkn_coins_val.pdf |title=Table 4: Euro coins, values (EUR millions, unless otherwise indicated, not seasonally adjusted) |access-date=December 13, 2009 |publisher=[[European Central Bank|ECB]] |quote=2009, October: Total coins: 21,032 (million EUR) |archive-url=https://www.webcitation.org/5njSKi43Q?url=https://stats.ecb.europa.eu/stats/download/bkn_coins_val/bkn_coins_val/bkn_coins_val.pdf |archive-date=February 22, 2010 |url-status=dead}}
* {{cite web |url=http://federalreserve.gov/releases/h6/current/h6.htm |title=Money Stock Measures |access-date=December 13, 2009 |work=Federal Reserve Statistical Release |publisher=Board of Governors of the [[Federal Reserve System]] |quote=Table 5: Not Seasonally Adjusted Components of M1 (Billions of dollars), not seasonally adjusted, October 2009: Currency: 859.3 (billion USD) |archive-url=https://web.archive.org/web/20091209203956/http://federalreserve.gov/releases/h6/Current/h6.htm |archive-date=December 9, 2009}}
* {{cite web |url=http://www.ecb.europa.eu/stats/eurofxref/eurofxref-hist-90d.xml |title=Euro foreign exchange reference rates |access-date=December 13, 2009 |publisher=[[European Central Bank|ECB]] |quote=Exchange rate October 30, 2009: 1 EUR = 1.48 USD |archive-url=https://web.archive.org/web/20140325101851/http://www.ecb.europa.eu/stats/eurofxref/eurofxref-hist-90d.xml |archive-date=March 25, 2014}}</ref>