In particular, the negative feedback loop operating between financial and economic activities is no longer confined to the U.S. and European economies but has recently begun to be observed in other economies, indicating that the conditions of the world economy have become more severe.
At the beginning of December, the National Bureau of Economic Research (NBER), which determines the business cycle of the U.S. economy, announced that the U.S. economy, which had been expanding from November 2001, already entered a recession phase in December 2007. The Federal Reserve has significantly reduced its target for the federal funds rate since last fall.