As an expert in the field of economics, I can provide a comprehensive analysis of how recessions generally end, with specific reference to the Great Recession that occurred from December 2007 to June 2009 in the United States.

Recessions are periods of economic decline that are characterized by a decrease in economic activity, often marked by a fall in GDP, high unemployment, and a decline in investment and consumer spending. The end of a recession is typically marked by a return to growth, with an increase in economic activity and a gradual recovery in the key indicators that were affected during the downturn.

Step 1: Monetary Policy Adjustments
One of the primary ways that recessions end is through adjustments in monetary policy. Central banks, such as the Federal Reserve in the U.S., can stimulate the economy by lowering interest rates, which encourages borrowing and spending. During the Great Recession, the Federal Reserve reduced the federal funds rate to near zero, a strategy known as a zero-interest-rate policy (ZIRP). This move was aimed at making credit more accessible and affordable, thereby stimulating investment and consumption.

Step 2: Fiscal Stimulus Measures
Governments can also play a crucial role in ending recessions through fiscal stimulus. This involves increasing government spending and/or cutting taxes to boost aggregate demand. The American Recovery and Reinvestment Act of 2009 was a significant fiscal stimulus package designed to jumpstart the U.S. economy. It included tax cuts, increased infrastructure spending, and support for individuals and businesses, which helped to increase demand and stimulate economic growth.

Step 3: Financial Sector Repair
The health of the financial sector is critical to economic recovery. During the Great Recession, the financial system was severely impacted, with many banks facing insolvency. Governments and central banks intervened with various measures, including capital injections, asset purchases, and guarantees, to stabilize the banking system. The Troubled Asset Relief Program (TARP) in the U.S. was one such initiative that helped to restore confidence in the financial markets.

**Step 4: Deleveraging and Balance Sheet Repair**
Households and businesses often reduce their debt levels during a recession, a process known as deleveraging. As the financial position of these entities improves, they are more likely to invest and spend, contributing to economic recovery. During the Great Recession, households began to save more and pay down debt, which eventually led to a stronger balance sheet and increased consumer confidence.

Step 5: Structural Reforms
Sometimes, recessions are a result of structural issues within the economy. Addressing these issues through reforms can help to end the recession and prevent future downturns. Structural reforms might include changes to labor markets, education systems, and regulatory frameworks to enhance productivity and competitiveness.

Step 6: Global Coordination
In a globalized economy, the end of a recession in one country can be influenced by actions taken in others. International cooperation and coordination can help to stabilize financial markets and promote global economic recovery. The G20 played a significant role during the Great Recession, bringing together the world's major economies to discuss and implement coordinated responses to the crisis.

Step 7: Confidence Restoration
Finally, the restoration of confidence among consumers, investors, and businesses is vital. As confidence returns, so does the willingness to spend and invest, which can help to bring an end to the recession. Communication from policymakers and positive economic data can contribute to this shift in sentiment.

In conclusion, the end of a recession is a complex process that involves a combination of monetary policy adjustments, fiscal stimulus, financial sector repair, deleveraging, structural reforms, global coordination, and the restoration of confidence. Each recession is unique, and the specific measures that prove effective can vary. However, the general principles outlined above provide a framework for understanding how economies typically emerge from periods of decline.

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According to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the recession, as experienced in that country, began in December 2007 and ended in June 2009, thus extending over 19 months.read more >>