as economic crisis one designates the phase of a clearly negative development of the economic growth in the political economy. Besides one designates also negative developments with other macro-economic variables (z. B. Price level, occupation, flows of capital etc.) as economic crisis. An economic crisis can do particulars or several national economies or even thoseentire world economy concern. The national economies concerned by an economic crisis suffer in the consequence mostly from social consequences such as unemployment, depletion of broad social classes or social unrests.
Related to the economic economic situation one differentiates three developments stagnation, recession and depression. Stagnation callsone a phase, in which a national economy does not grow and thus the output stagnates between two times. However it is contentious whether a phase of the stagnation can be called economic crisis. In a recession the economical output shrinks however over at least according to general definitiontwo sequential quarters. Depression one calls a long persisting recession.
The reasons for growth crises are various. On the one hand they can be released by an economical demand, which is too small in relation to the economical offer (see Unterkonsumtionstheorie). This again can to attribute its to a breaking in being nominal oh question, D. h. a strong decrease of the consumer acceptance of the consumers (also as consumer strike designates). This again hangs off of the confidence of the consumers into the future economic development (D. h. Growth prospects, security of the own job etc.). Work themselves negatively herez. B. large natural catastrophes, Kriegsgefahr or terrorist attacks out. Also scarcities of resources (z. B. in form of an oil price shock) lead to a restraint of the consumers. After keynesianischer aspect also the national demand for goods has a strong influence on the overall economic development; the state lowers its Public expenditures or he increases the taxes, then this leads across a multiplicator effect to a decrease of the total demand and can release or strengthen an economic crisis thus.
Growth crises can be justified also by the offer side: So the dismantling of existing high over-capacities ( the structure crisis in such a way specified can ) lead uncertainty described too above and a decrease of the total demand.
concerning the price economic crises
major items inflation
footsteptogether with continuous and high inflation up, then one speaks a stagnation (or recession) of a stagflation. Also a high inflation (hyperinflation) can be called form of the economic crisis. Also a durable decrease of the prices (deflation) is turned around aseconomic crisis outstandingly.
Strong price increases can be released by a whole set of factors: A high economic growth (connected with a strongly expansive domestic demand) leads directly to a raising the price of of the goods. One speaks in such a case of an overheating; the strongly rising price increaseleads to breaking in the total demand and thus and. And. to a stagflation.
Also from the offer side it can come to a concerning the price economic crisis: If the prices for Vorprodukte (for example due to strong Rohstoffpreis - increases) rise strongly, then it comes simultaneously to inflation pressure andDecrease in demand.
Beyond that also a too expansive monetary policy can lead to inflation and the associated crisis symptoms.
past a multiplicity of economic crises on the international financial markets took place financial market crises major item financial crisis. Becomes to large extent capital from oneTaken off, then one completely generally speaks country of a financial crisis. If this is released by a collapse of the bank system or accompanies, one speaks also of a bank crisis. A further typical accompaniment of financial crises is the strong devaluation of the currency of a country (= monetary crisis).
If a country finances its standard of living over strong Kapitalzuflüsse from the foreign country, then one speaks of a latent balance of payments crisis, since such a behavior is not on a long-term basis portable. A monetary crisis is (v. A. in developing countries) often the direct consequence of a balance of payments crisis. Step bank and monetary crisis togetherup, then one speaks of a twin crisis (Lit.: Kaminsky/Reinhart, 1999).
Generally all financial crises released by uncertainty on the part of the investors over the Vorteilhaftigkeit of the plant in a country. The same applies with bank crises related to the individual bank and/or. the banking. As reason forthe crisis can be designated thus that factor, which is responsible for the increasing uncertainty. In case of of bank crises these are usually a badly functioning bank system, an insufficient state supervision of the banks or the bad overall economic situation, which lead to the fact that the banks a largeTo copy must come to number at demands in such a way and into a financial inclination.
General financial and monetary crises leave themselves and. A. attribute to Ineffizienzen at the financial markets - z. B. in the form of blisterings. The possibility of a fast departure from financial capital is to attribute to small Transaction costs. The shorter the average period of the capital put on in a country is, the more largely is the danger of a financial crisis. Financial crises are favoured by uncertain prospects relating to market conditions and by political uncertainties (danger of a Putsches, absence of right security, danger of expropriations etc.).
Also a wrong economic policy can be responsible for financial crises: The state or the central bank keeps a regime of firm rates of exchange upright to for a long time, although this no longer toothe overall economic basic conditions fits, then the danger of a currency and thus flight of capital and a bank crisis rises.
its tiled stove
the Tulpenmanie in such a way specified was an economic crisisin the Netherlands between 1634 and 1637. The speculation was connected with the Haarlemer tulip bulbs, to which one attached a superelevated and often purely fictitious value.
English financial crisis
further crises 18. Century
- 1716 - 1720: the Law share and note swindle
- 1711 - 1720: the English South Seas swindle
- 1790 - 1797: the French Assignatenwirtschaft
Hamburg trade depression
crises early 19. Century
- 1815: English economic crisis (released by over-estimation of the consumer behaviour on the continent)
- 1825: English economic crisis after onelarge-scale establishment and share fraud (of the projected 372 million Pound of Sterling of Sterling were deposited) in reality only 17.6 million Pound.
panic of 1837: From 1837 to 1843 lasting the economic crisis was coined/shaped by a sharp decline in economic activity in that , Confidence lacking causes US-American economy into the paper currency from bad investments of the banks and. The effects were passed in particular to the English economy.
English railway crisis
1847 was shaken again England by a violent economic crisis, released this time by the speculation with railways and supply enterprises.Those only three years old Peel bank document had to be occasionally suspended thereby.
founder crisis: Following the boom years of the period of promoterism it came 1873 to a large bank crisis, in whose consequence alone in Germany and Austria over 60 banks became insolvent.With the founder crisis it concerned tendentious around one by overheating of the national economy caused crisis and thus only a correction of the preceding high growth rates. Companies and factories had been taken over and formed at überbhöhten prices.
This crisis met at the same time with an US-American economic crisisand led in all highly developed countries to a long stagnation. The economic fall achieved its deepest point 1878 and only in the second half of the yearly 1879 occurred an improvement of the economic situation outgoing from the USA and England.
collapse of the stock market in France
In France soon a standing stock exchange swindle générale under the influence of the union developed, to 19 after the founder crisis. January 1882 with a large collapse of the stock market ended, which seized mainly the stock exchanges of Paris and Lyon.
inflation in the German Reich 1914-1923
GermansInflation 1914 to 1923: The hyperinflation of the yearly 1923 in the Weimar Republic has its causes in the kind of the financing of the First World War (treasury bonds, which had to be financed by the design of war loans by the population afterwards) and their consequences: The statepaper money printed, in order to be able to finance first the war and the reparation payments later to large extent. The war-conditioned recession fell thus together with a high inflation.
world economic crisis 1929
world economic crisis (Great depression) 1929 into the late 1930er - years: As world economic crisisdesignates one 1929 an using heavy economical break-down, which had substantial negative consequences in all important industrial nations (and. A. in enterprise collapses, mass unemployment and deflation), since many today natural market-adjusting elements were still missing.
first oil crisis
first oil crisis 1973: The oil embargo of the OPECconnected with the high indebtedness of the American state because of the Viet Nam war led to the stagflation in the USA. By the first oil crisis all important industrial nations were concerned. In Germany it marked the end of the Wirtschaftswunders. In the consequence to date to a large extent unknown features arose,about short-time work, unemployment and rising social expenditures.
second oil crisis
second oil crisis 1979 to 1980: A further drastic price increase took place 1979/1980. It was released essentially by promotion losses and disconcertion during the first Gulf War between Iran and Iraq. Thoserezessiven effects in the industrialized countries were less serious than in consequence of the first oil crisis. However the second oil crisis is to be seen as the final trips of the debt crisis of a set from developing countries to. These had to partly negotiate in several conversion of debts agreements to center of the 1990er on political level,in order to regain their politico-economic sovereignty.
Japan crisis since 1991: Japan crisis one calls a heavy economic crisis of the country, which in consequence of the blow-out real estate price - blister at the beginning of the 1990er arose and which economic situation of the country coined/shaped nearly 15 years long.The strong decrease of the fortune prices led to a felt depletion of the population, who contributed to a strong consumer restraint. Business errors, over-capacities and Ineffizienzen strengthened the effect. The result were a rise of unemployment, the world-wide highest national indebtedness for the Japanese state and a deflation of many years.
Asia crisis 1997 to 1998: Asia crisis the financial and economic crisis of Eastern Asia of the years 1997 and 1998 are called. It began in July 1997 in Thailand and spread to several asiatic states, in particular to many of the tiger states in such a way specified.The countries most strongly concerned were Indonesia, South Korea and Thailand. A cause of the crisis were the too high net yield promises to foreign investors, who did not let themselves be refinanced by investments in the countries no more. Therefore and due to the missing Wechselkursrisikos (firm rate of exchange connection to the US Dollar) much short term capital flowed into the countries in the apron of the crisis. By herd behavior it came into consequence of first crisis symptoms to a solid capital departure from the countries, which released an economic and a financial crisis of several years there.
collapse of the Dotcom blister starting from 2000:In March 2000 it came in many industrialized countries to the blow-out of a speculation blister, which in particular the Dotcom in such a way specified - enterprise concerned. Similarly as with the Japan crisis it came to a felt fortune decrease and to it due to a purchase restraint, which led to rezessiven tendencies in the countries.
consequences of economic crises
typical negative consequences of economic crises are an increase of social tensions (z. B. the Cacerolazo in consequence of the Argentina crisis), there often in particular poorer social classes under thatConsequences of the crisis suffer. With some economic crises it comes to unrests up to civil wars and other martial conflicts.
These unrests have often also political consequences: Economic crises can for the fall of existing governments and even to a circulation of the entire political system (either Putsch or Democratization) lead. So seen economic crises offer not only risks, but also chances.
Also economically economic crises are not only to be evaluated negatively. Thus often not least an economic crisis causes the reform pressure necessary for the change of a national economy.
- Kaminsky, G./Pure-hard, C. (1999):The twin Crises: The Causes OF Banking and balance OF Payments' of problem, in: The American Economic Review, 89. Class, S. 473-500.