Top economy stories of 2011

These events, people and ideas shaped our discussion of the global and U.S. economies this year.

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The budget and debt ceiling debates

The debate over fiscal issues was fiery this year: It brought us to the brink of a government shutdown, threatened to throw America into default and was the source of intense partisan bickering on Capitol Hill. Here, President Obama and House Speaker John Boehner meet at the White House in an attempt to negotiate a deal. With payroll tax cuts set to expire in February and the George W. Bush-era tax cuts set to run out later in 2012, this issue will continue to be dominant next year.

Jewel Samad / AFP/Getty Images

Fallout from the wrangling over the debt ceiling

The difficulty leaders had in reaching a bipartisan agreement had at least two key consequences: For one, it prompted Standard & Poor's to downgrade the U.S.'s credit rating. (More on that later.) But it also prompted a strong wave of discontent American citizens, who gave Congress their lowest approval ratings ever. Here, members of the group No Labels hold a rally in Washington to urge Congress and the president to find a bipartisan solution to the fiscal crisis.

Jacquelyn Martin / AP

S&P downgrades the U.S.'s credit rating, setting off a wild week in the markets

On Aug. 5, 2011, Standard & Poor's for the first time downgraded the United States's pristine AAA credit rating, a move that made stock markets around the world plunge. The week that followed was the most volatile on Wall Street since the height of the financial crisis almost three years earlier, with markets swinging between steep gains and losses.

Stan Honda / AFP/Getty Images

Financial upheaval roils Greece

Protesters are seen through smoke from a tear gas canister thrown by riot police in Athens.

Petros Giannakouris / AP

Italy's debt crisis intensifies

After Greece received its second bailout, the focus of Europe's debt crisis shifted to Italy, which was teetering on the brink of financial disaster. As it did in Greece, the debt crisis toppled the country's premier, with Mario Monti taking over for Silvio Berlusconi.

Andrew Medichini / AP

European leaders act to stem the continent's debt crisis

Through a series of summits, European leaders -- most prominently German Chancellor Angela Merkel and French President Nicolas Sarkozy -- aimed to develop rules and policies to remedy the crisis. Their most recent plan calls for mandatory limits on budget deficits among debt-laden European governments.

Jan-Paul Pelissier / AP

Unemployment continues to threaten the U.S. economic recovery

The most recent figures from the Bureau of Labor Statistics put the nation's unemployment rate at 8.6 percent after hovering around 9 percent for most of the year. Voters have cited the economy and jobs as the issue they are most concerned with as they cast their ballots in the 2012 election, so look for policymakers and candidates to stay focused on this in the new year. Pictured here is Maxine Thomas, who has been struggling since she lost her job last fall. Her electricity was shut off by the utility company in June when she fell behind on her bill.

Michael S. Williamson / The Washington Post

The Federal Reserve launches "Operation Twist"

In September, the Fed announced that it would move $400 billion worth of assets from short-term to long-term securities, a move that it hoped would help boost the stalling economic recovery. Federal Reserve Chairman Ben Bernanke is pictured.

Jason Reed / Reuters

The housing market continued to struggle

Despite record-low mortgage rates, home-buying remained depressed in 2011. Furthermore, most cities saw a year-over-year decline in home prices. According to the Case-Shiller home price index, Washington and Detroit were the only metropolitan areas that saw home prices rise.

Steven Senne / AP

Occupy Wall Street movement puts the spotlight on inequality

What began as a small group of protesters taking to the streets outside the New York Stock Exchange has grown into a global movement that highlights discontent with the growing wealth gap. Here, Occupy Wall Street protesters reach Times Square after a march up Seventh Avenue in New York.

John Minchillo / AP

State and municipal budgets face crises

Strapped for cash, many state and local governments faced fiscal challenges this year. The most prominent example was in Wisconsin, where Gov. Scott Walker's bill that would have sharply curtailed collective-bargaining rights faced a serious backlash from unions and public-sector employees. In November, Jefferson County, Ala., filed the biggest municipal bankruptcy in history. States including Washington, New York and New Jersey struggled to deal with low tax revenues. Here, protesters gather at the State Capitol in Madison, Wis.

Andy Manis / AP

A sex scandal rocks the IMF

It may not have been a story that directly affected the global economy, but Dominique Strauss-Kahn's sexual assault scandal certainly had the business and economic community talking. Strauss-Kahn was forced to resign as head of the International Monetary Fund after allegations surfaced that he had sexually assaulted a maid in his New York hotel room. The case was later dismissed after the alleged victim's story began to unravel. In this photo, Strauss-Kahn leaves a police station in New York where he was being held.

Craig Ruttle / AP

Featured Photo Galleries

PARIS, FRANCE - MAY 29: Serena Williams of USA stretches to plays a forehand in her women's singles first round match between Serena Williams of USA and Virginie Razzano of France during day three of the French Open at Roland Garros on May 29, 2012 in Paris, France. (Photo by Mike Hewitt/Getty Images)

French Open results: Serena Williams loses, Maria Sharapova cruises

The American tennis star lost in the first round of a Grand Slam event.

Winnie Pajcic, 9, holds on to a railing as she leans back in the wind during a visit to Stockton Park in Ortega, Fla., in the aftermath of Tropical Storm Beryl on Monday May 28, 2012. Beryl came ashore early Monday near Jacksonville Beach with near-hurricane-strength winds of 70 mph. (AP Photo/The Florida Times-Union, Kelly Jordan)

Tropical storm Beryl, Flugtag, Rolling Thunder, Memorial Day and more in the day in photos

Tropical storm Beryl, Flugtag, Rolling Thunder, Memorial Day and more.

Camels rest at a watering hole outside the town of Aleg May 25, 2012. REUTERS/Joe Penney (MAURITANIA - Tags: ANIMALS SOCIETY)

Camels, tigers, turtles, a giant stag beetle and more in animal views

Camels, tigers, turtles, a giant stag beetle and more.

ANNAPOLIS, MD- MAY 29: Graduates cheer as the Blue Angels fly over during the 100th anniversary of the United States Naval Academy Graduation and Commissioning Ceremonies in Annapolis, Maryland, on Tuesday, May 29, 2012. U.S Sec. of Defense Leon Edward Panetta gave the graduation address. (Photo by Nikki Kahn/The Washington Post)

U.S. Naval Academy graduation

Secretary of Defense Leon Panetta gave the commencement address at the ceremony.

LAS VEGAS, NV - MAY 26: Singer/actress Jennifer Lopez (C) performs with dancers during the Q'Viva! The Chosen Live show at the Mandalay Bay Events Center on May 26, 2012 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

Eye on entertainment

Jennifer Lopez, Marc Anthony, Lil Jon, Eddie Van Halen, Mariah Carey and other celebrities.

Doc Watson, bluegrass and folk legend, dies at 89

The blind singer and guitarist was a Grammy winner, known for his flat-picking style of guitar playing.

Henry, a calf, sustained a head wound and required stitches after being slashed over the weekend.

Farm animals attacked in Fairfax

A calf, two goats and a chicken were slashed over the weekend at Frying Pan Farm Park in Herndon.

COVINGTON, LA - MAY 14: Brother Emmanuel Labrise of St. Joseph's Abbey prepares a casket for lining on May 15, 2012 in Covington, Louisiana. Louisiana law forbids those who are not licensed funeral directors from selling caskets. And since Hurricane Katrina leveled the timberlands that once provided the main source of funding for the abbey, the monks have attempted to make a living by building and selling simple cypress caskets. The monks won their first round last year, and have a hearing at the U.S. Court of Appeals for the 5th Circuit in June. (Photo by Sean Gardner/For the Washington Post)

Louisiana monks fight for the right to sell coffins

Federal court case pits a group of monks against the funeral home industry.

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