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 Crises: History
Famous quotes containing the words financial and/or crises:
“America is a nation with no truly national city, no Paris, no Rome, no London, no city which is at once the social center, the political capital, and the financial hub.”
—C. Wright Mills (1916–1962)
“Part of the responsibility of being a parent is to arrange situations in children’s lives so they are able to meet crises with a reasonable chance of coping successfully with them.... Parents who believe children are unharmed by crises and will simply bounce back in time seriously misunderstand children.”
—Donald C. Medeiros (20th century)