When did the Global Financial Crisis start and end?
The Proceedings of the 3rd Business Doctoral and Emerging Scholars Conference
Edith Cowan University (School of Business and Law)
School of Business and Law
This article challenges the common wisdom, and provides new insights, about the starting and ending time of the GFC. Using a Bai-Perron (1998) multiple break test, three break points were identified in the U.S. daily returns, including July 20, 2007, October 3, 2009 and August 12, 2011. The study argues that while the peak of the GFC eased off somewhere in October 2009, the last break in August 2011 reveals that there might have been an extended crisis period. These break points are also supported by the gold price and the continuing negative growth in many countries.