Financial Crises

Financial Crises

The term financial crisis is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in changes in the real economy.

Many economists have offered theories about how financial crises develop and how they could be prevented. There is no consensus, however, and financial crises continue to occur from time to time.

Read more about Financial CrisesHistory

Other articles related to "financial, financial crises, crises":

Financial Crisis
... The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value ... In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics ... Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign ...
Economic Bubble - Origin of Term
... The term "bubble", in reference to financial crises, originated in the 1711–1720 British South Sea Bubble, and originally referred to the companies themselves, and their inflated stock ... This was one of the earliest modern financial crises other episodes were referred to as "manias", as in the Dutch tulip mania ... once, and nothing first, / Just as bubbles do when they burst," though theories of financial crises such as debt-deflation and the Financial Instability Hypothesis suggest instead that ...
Causes and Consequences of Financial Crisis - Regulatory Failures
... Governments have attempted to eliminate or mitigate financial crises by regulating the financial sector ... One major goal of regulation is transparency making institutions' financial situations publicly known by requiring regular reporting under standardized accounting ... Some financial crises have been blamed on insufficient regulation, and have led to changes in regulation in order to avoid a repeat ...
Financial Crises - History - 21st Century
2000–2001 – Turkish Crises 2000 – early 2000s recession 2001 – Argentine Crises 2001 – Bursting of dot-com bubble – speculations concerning internet companies crashed ...

Famous quotes containing the words crises and/or financial:

    I am not fooling myself with dreams of immortality, know how relative all literature is, don’t have any faith in mankind, derive enjoyment from too few things. Sometimes these crises give birth to something worth while, sometimes they simply plunge one deeper into depression, but, of course, it is all part of the same thing.
    Stefan Zweig (18811942)

    Because of these convictions, I made a personal decision in the 1964 Presidential campaign to make education a fundamental issue and to put it high on the nation’s agenda. I proposed to act on my belief that regardless of a family’s financial condition, education should be available to every child in the United States—as much education as he could absorb.
    Lyndon Baines Johnson (1908–1973)