Financial crisis

economic crisisfinancial criseseconomic crisesfinancial paniceconomicfinancialmonetary crisiscrisisfinancial market turmoilpanic
A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value.wikipedia
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Recession

economic recessioneconomic downturndepression
In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics.
This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble.

Bank run

runrun on the bankbanking crisis
In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. This is the type of argument underlying Diamond and Dybvig's model of bank runs, in which savers withdraw their assets from the bank because they expect others to withdraw too.
A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as people suddenly try to convert their threatened deposits into cash or try to get out of their domestic banking system altogether.

Currency crisis

balance of payments crisiscurrency crisescurrency
Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.
A currency crisis is a type of financial crisis, and is often associated with a real economic crisis.

Economic bubble

bubblespeculative bubblebubble economy
Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.
The term "bubble", in reference to financial crisis, originated in the 1711–1720 British South Sea Bubble, and originally referred to the companies themselves, and their inflated stock, rather than to the crisis itself.

Tulip mania

TulipomaniaTulipmaniaTulip Bubble
Well-known examples of bubbles (or purported bubbles) and crashes in stock prices and other asset prices include the 17th century Dutch tulip mania, the 18th century South Sea Bubble, the Wall Street Crash of 1929, the Japanese property bubble of the 1980s, the crash of the dot-com bubble in 2000–2001, and the now-deflating United States housing bubble.
In many ways, the tulip mania was more of a hitherto unknown socio-economic phenomenon than a significant economic crisis.

Latin American debt crisis

debt crisisforeign debt interest paymentsLatin America
Many Latin American countries defaulted on their debt in the early 1980s.
The Latin American debt crisis (Crisis de la deuda latinoamericana; Crise da dívida latino-americana) was a financial crisis that originated in the early 1980s (and for some countries starting in the 1970s), often known as La Década Perdida, when Latin American countries reached a point where their foreign debt exceeded their earning power, and they were not able to repay it.

Subprime mortgage crisis

2007 subprime mortgage financial crisissubprime crisissub-prime mortgage crisis
The subprime mortgage crisis and the bursting of other real estate bubbles around the world also led to recession in the U.S. and a number of other countries in late 2008 and 2009.
The United States subprime mortgage crisis was a nationwide financial crisis, occurring between 2007 and 2010, that contributed to the U.S. recession of December 2007 – June 2009.

Financial crisis of 2007–08

financial crisis of 2007–2008global financial crisis2008 financial crisis
For example, the former Managing Director of the International Monetary Fund, Dominique Strauss-Kahn, has blamed the financial crisis of 2007–2008 on 'regulatory failure to guard against excessive risk-taking in the financial system, especially in the US'.
The financial crisis of 2007–08, also known as the global financial crisis and the 2008 financial crisis, was a severe worldwide economic crisis considered by many economists to have been the most serious financial crisis since the Great Depression of the 1930s, to which it is often compared.

International Monetary Fund

IMFInternational Monetary Fund (IMF)World Economic Outlook
For example, the former Managing Director of the International Monetary Fund, Dominique Strauss-Kahn, has blamed the financial crisis of 2007–2008 on 'regulatory failure to guard against excessive risk-taking in the financial system, especially in the US'.
This assistance was meant to prevent the spread of international economic crises.

Fractional-reserve banking

fractional reserve bankingCriticism of fractional-reserve bankingfractional reserve system
Since banks lend out most of the cash they receive in deposits (see fractional-reserve banking), it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run renders the bank insolvent, causing customers to lose their deposits, to the extent that they are not covered by deposit insurance.
However, during a bank run or a generalized financial crisis, demands for withdrawal can exceed the bank's funding buffer, and the bank will be forced to raise additional reserves to avoid defaulting on its obligations.

Paper wealth

paper claims to wealth
Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy (e.g. the crisis resulting from the famous tulip mania bubble in the 17th century).
Paper wealth is also important in certain theories of economic crises, notably those that believe these to be caused by price bubbles, as described below.

Washington Consensus

macroeconomic adjustmentneoliberal agendaneoliberal policy
World systems scholars and Kondratiev cycle researchers always implied that Washington Consensus oriented economists never understood the dangers and perils, which leading industrial nations will be facing and are now facing at the end of the long economic cycle which began after the oil crisis of 1973.
The Washington Consensus is a set of 10 economic policy prescriptions considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monetary Fund (IMF), World Bank and United States Department of the Treasury.

Financial fragility

Financial Fragility is the vulnerability of a financial system to a financial crisis.

Business cycle

economic boomboomboom and bust
World systems scholars and Kondratiev cycle researchers always implied that Washington Consensus oriented economists never understood the dangers and perils, which leading industrial nations will be facing and are now facing at the end of the long economic cycle which began after the oil crisis of 1973.
The first systematic exposition of economic crises, in opposition to the existing theory of economic equilibrium, was the 1819 Nouveaux Principes d'économie politique by Jean Charles Léonard de Sismondi.

Sovereign default

sovereign debt crisisnational bankruptcybankrupting
Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.

Diamond–Dybvig model

Diamond-Dybvig modelDiamond and Dybvig's modelDouglas Diamond
This is the type of argument underlying Diamond and Dybvig's model of bank runs, in which savers withdraw their assets from the bank because they expect others to withdraw too.
The Diamond–Dybvig model is an influential model of bank runs and related financial crises.

Panic of 1792

Financial Crisis of 1791–92first financial crisis
The Panic of 1792 was a financial credit crisis that occurred during the months of March and April 1792, precipitated by the expansion of credit by the newly formed Bank of the United States as well as by rampant speculation on the part of William Duer, Alexander Macomb, and other prominent bankers.

Panic of 1819

18191819 to 1821, which was one of the most severe1819–20
The Panic of 1819 was the first major peacetime financial crisis in the United States.

Stock market crash

crashcrashesmarket crash
Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults.

Panic of 1837

financial panic of 1837financial crisis of 18371837
The Panic of 1837 was a financial crisis in the United States that touched off a major recession that lasted until the mid-1840s.

Crisis of 1772

Credit crisis of 1772Crisis of 1772–1773major banking crisis
The crisis of 1772, also known as the credit crisis of 1772 or the panic of 1772, was a peacetime financial crisis which originated in London and then spread to other parts of Europe, such as Scotland and Netherlands.

Panic of 1873

Financial Panic of 1873silver crisis of 18731873
The Panic of 1873 was a financial crisis that triggered an economic depression in Europe and North America that lasted from 1873 until 1877, and even longer in France and Britain.

A Monetary History of the United States

A Monetary History of the United States, 1867–1960A Monetary History of the United States 1867-1960A Monetary History of the United States, 1867-1960
In particular, Milton Friedman and Anna Schwartz argued that the initial economic decline associated with the crash of 1929 and the bank panics of the 1930s would not have turned into a prolonged depression if it had not been reinforced by monetary policy mistakes on the part of the Federal Reserve, a position supported by Ben Bernanke.
Paul Krugman has argued that the 2008 financial crisis has shown that, during a financial crisis, central banks cannot control broad money, and that money supply bears little relationship to GDP.

Panic of 1907

depression of 19071907 financial crisisFinancial Panic of 1907
The Panic of 1907 – also known as the 1907 Bankers' Panic or Knickerbocker Crisis – was a financial crisis that took place in the United States over a three-week period starting in mid-October, when the New York Stock Exchange fell almost 50% from its peak the previous year.

Sudden stop (economics)

sudden stop
While devaluation and default could both be voluntary decisions of the government, they are often perceived to be the involuntary results of a change in investor sentiment that leads to a sudden stop in capital inflows or a sudden increase in capital flight.