in global trade, industrial production, capital flows, employment, and energy consumption (Kose, Sugawara, and Terrones 2019). They were triggered by different types of shocks and each exhibited unique features, but they were all accompanied by financial crises.<sup>2</sup> The global recession of 1975 followed the shock to global oil prices triggered by the Arab oil embargo in October 1973. Although the embargo ended in March 1974, the supply shock associated with the sharp rise in oil prices quickly translated into a substantial increase in inflation and a significant decline in growth in many countries (Ha et al. 2019a). Monetary and fiscal policy easing, especially by advanced economies, helped spur a rebound of growth in 1976, but also ushered in an era of stagflation with disappointing growth but high and unstable inflation.

The global recession in 1982 was triggered by several developments, including a second oil price shock, a tightening of monetary policies in advanced economies, and the Latin American debt crisis. Oil prices rose sharply in 1979, partly owing to disruptions caused by the Iranian revolution, and this helped push inflation to new highs in several advanced economies. In response, monetary policies were tightened significantly, especially in the United States, causing sharp declines in activity and significant increases in unemployment rates in many advanced economies in 1982-83. The increase in global interest rates and a collapse of commodity prices in the early 1980s made it difficult for several Latin American countries to service their debts, resulting in debt crises in the region. Even though advanced economies were able to recover quickly, the debt crisis contributed to long-lasting growth slowdowns in many EMDEs in Latin America and the Caribbean (LAC) and in Sub-Saharan Africa (SSA).

The 1991 global recession resulted from the confluence of a wide range of shocks. The Gulf War was associated with heightened geopolitical uncertainty and a sharp increase in oil prices, which adversely affected global activity. In Central and Eastern Europe and the former USSR, the transition to a market economy was accompanied by high inflation and output contractions. In the United States, widespread weakness of lending institutions from the mid-1980s weighed on the housing market, especially during the credit crunch of 1990-91. Scandinavian countries had severe banking crises in the early 1990s, following the liberalization of financial sectors and rapid expansion in credit markets in the 1980s. In the European Union, problems with the European Monetary System’s exchange rate mechanism in 1992 were accompanied by sharp declines in activity in many member countries. In Japan, the bursting of an asset price bubble resulted in a recession and a prolonged period of low growth and near-zero inflation. The broad-based financial distress in multiple large economies meant that the recovery from the 1991 recession was subdued.

The 2009 global recession followed the worst financial crisis since the Great Depression. As discussed in detail later, the crisis followed a period of loosening regulation and supervision of financial markets and institutions, asset price and credit booms in a number

> 2  The events surrounding these episodes are discussed in detail in Knoop (2004), Reinhart and Rogoff (2009), and Kose and Terrones (2015). Barsky and Kilian (2004) and Hamilton (2011) present surveys of the history of oil shocks and the subsequent economic downturns.