The global economy grew rapidly in the years following WWII, as war-torn nations rebuilt their economies and the United States emerged as the dominant global economic power. The US dollar became the global reserve currency and the International Monetary Fund (IMF) and the World Bank were created to help facilitate international trade and investment.
Oil Shocks and Economic Uncertainty (1973–1982)
The 1970s saw a series of oil crises that caused a global recession and led to a slowdown in economic growth. This period also saw the rise of inflation, which caused central banks to raise interest rates and further dampen economic activity.
Globalization and Technological Change (1982–2008)
The 1980s saw the beginning of a period of globalization and technological change that would have a profound impact on the global economy. The fall of the Berlin Wall and the rise of China as a major economic power were also major factors during this period.
The Global Financial Crisis (2008–2009)
The global financial crisis of 2008-2009 caused a deep recession in many countries and led to a slowdown in global economic growth. The crisis also led to increased regulation of the financial sector and a renewed focus on macroeconomic policy.
The Rise of Emerging Markets (2009-Present)
The recovery from the global financial crisis was slow and uneven, and was largely driven by the growth of emerging markets. China and India, in particular, have emerged as major players in the global economy.
The global economy has changed significantly since WWII. The rise of the United States as a global economic power, the oil crises of the 1970s, the globalization and technological change of the 1980s and 1990s, the Global Financial Crisis, and the rise of emerging markets have all shaped the global economy as we know it today.