Introduction

The aim of this paper is to analyze the current phase of the global crisis that began in the United States in 2007 as a financial crisis linked to sub-prime mortgages. The current phase, which began during the last quarter of 2008, is characterized by the interaction of the financial crisis —far from having been overcome— and the deepening and universal expansion of the recession in production. I will go into this in greater detail further along. Section 2 summarizes my position about the nature of the global crisis. Section 3 presents a proposal about the stages this crisis has already gone through. Section 4 examines the advance of the recession in the world economy ; and Section 5 focuses on the development of deflation. Finally, Section 6 presents some conclusions and perspectives for the future.

Paper presented at the 6th International Conference Developments in Economic Theory and Policy (www.conferencedevelopments.com). Bilbao, Spain. July 2-3, 2009.