A financial crisis is a situation in which the value of financial institutions or assets drops rapidly. Financial crises are often associated with banking panics, and can be triggered by a variety of events, including investor panic, economic downturns, regulatory changes, and market crashes. Financial crises can have wide-ranging effects on economies, leading to recessions, unemployment, and a decrease in the value of goods and services.
History of Financial Crises
Financial crises have been a part of economic history since the beginning of commerce. The earliest recorded financial crisis occurred in the 4th century BC, when the Athenian government defaulted on its debt. Since then, financial crises have occurred in many countries, including the United States, Japan, and the United Kingdom. The most recent global financial crisis began in 2007 and lasted until 2009, resulting in a severe economic downturn in many countries.
Comparison of Financial Crises
|Athenian Default||4th Century BC||Greece|
|South Sea Bubble||1720||England|
|Great Depression||1929-1939||United States|
|Asian Financial Crisis||1997-1998||Asia|
|Global Financial Crisis||2007-2009||Global|
Financial crises have been a part of economic history for centuries, and can have wide-ranging effects on economies. For more information on financial crises, visit websites such as the International Monetary Fund, the World Bank, and the Federal Reserve Bank of St. Louis.
- Banking Panic
- Economic Downturn
- Regulatory Change
- Market Crash
- Debt Default
- Credit Crunch