Questions tagged [economic-crisis]
The economic-crisis tag has no usage guidance.
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Why would bank runs lead to a decrease of the total quantity of money supply M1?
It‘s specifically about the German banking crisis of 1931. I get how the banks increasing their reserves and cutting their loans (starting 1930) would cause money contraction (at least of M1). Doesn‘t ...
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Why did banks give out subprime mortgages leading up to the 2007 financial crisis to begin with?
I've been reading a couple of books on economics out of curiosity and it got me thinking about the 2007 financial crisis. Hindsight is always 20/20, but if you've ever worked with lower income people ...
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CDOs, Synthetic CDOs and 2008 financial crisis
I have recently been researching about the 2008 financial crisis and after hours of reading, I have been left with some gaps in my understanding of the events that lef to the collapse of the market in ...
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Why is the multiplicator effect considered stronger if money is handed out to poor people rather than the well off?
Frequently, extra handout to poor people during economic crisis is motivated by the multiplier effect. The reasoning goes something like this: since the recipients are poor they will consume the extra ...
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Is there alternative to the monetary tighetning when the inflation is caused by scarcity (supply-side shocks)?
Current economic crisis is created by sharp reducing shocks to the supply side - bad economic weather, political restrictions to the trade, service availability reduction in the transportation sector. ...
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Eurozone crisis between 1990s-2010(?)
Earlier when the Eurozone is established, the countries have a problem of competitiveness: the growth of wages is much faster than the growth of productivity. This high salary results in high prices ...
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Is there a research paper which analyzes the economic crisis 2008 by quantifiable critera?
I need to find a paper which analyzes the economic crisis in 2008 (by quantifiable critera). My task is to apply such criteria to the current situation. I have to use a research paper as a basis for ...
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Venezuela Hyperinflation in 2014 on an IS LM FX model
In 2014 Venezuela began experiencing some of the worst hyperinflation. I wanted to know how this situation would be represented on a IS LM FX model, and the consequences of the hyperinflation.
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Was the financial crash of 2008 caused by top graduates of the American Ivy Leagues working at wall street banks?
From this article by Lisandro 'Leloy' Claudio, a Philippine/a Filipino professor of history, politics, South & Southeast Asian Studies (and not necessarily of finance, economics, mathematics or ...
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Financial Crisis text book recommendation
I am looking for an academic textbook on the science of financial crises, such as bank runs, monetary crisis, bubbles, stock market crashes etc.
Ideally, the textbook would address what is currently ...
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Statistics of links between public debt and recessions
When the debt of a country gets above a certain level, is there a bigger chance for an economic crisis, recession or even civil unrest?
I know things are different today.
But did anyone bother to ...
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Was there a drop in liquidity in the corporate bond market during the Global Financial Crisis?
It is often said that the increase in the perceived default risk led to a fall in the demand for the corporate bonds. This led to the fall in their prices and hence, their interest rates rose ...
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Modelling the effect of crisis on unemployment
We want to estimate the effect of crises on a country's unemployment rate and distinguish the strength of this effect according to the debt level in a country (i.e. via the interaction effect crisis x ...
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Macroeconomics differences of 2008 financial crisis and 2020 economic crisis
How is 2020 financial crisis different from 2008 financial crisis? For example, why have stock market indices (e.g. S&P500, NASDAQ-100) recovered so quickly (about 3 months instead of longer than ...
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What caused the sharp increase in subprime-mortgages moving to punishingly high-rates in 2007, (which lead to defaults and a financial crisis)
I recently watched The Big Short, which added to my existing-but-superficial understanding of the 2007/8 financial crisis.
One major component of that crisis was a relatively sudden and sharp rise in ...
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What are the effects of liquidity crisis?
What are the actual effects of the lack of liquidity?
Economists always say, we need to increase liquidity at a time of recession, but why is liquidity is important for us? Could anyone explain it in ...
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Why could boasting oil during the current drop in oil demand be good for Saudi Arabia?
According to Bloomberg :
Saudi Arabia is one of the few countries in the world that can boast crude production that’s profitable in the current environment. But the kingdom’s economy is at risk, ...
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The financial crisis in 2008 explained in my own words [closed]
I'd like to double check if I understand the cause of the financial crisis in 2008. Correct me where I'm wrong please.
So when people buy a house they can take a mortgage. This is basically a loan ...
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The Economics of Coronavirus
People are concerned about the economic impacts of the virus. How severe will the economic downturn be? Will the coronavirus cause a global recession worse than the 2008 crisis?
I'm not looking here ...
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Country specific economic recession/financial crisis data?
Many financial crises are at the global level, yet some of them can be country-specific, especially the ones connected with political instability.
For example, the 1990 recession of Russia, the 1958 ...
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I bought a house on a mortgage. If its price changes later, how will it affect the ease of repaying the loan? [duplicate]
I had some difficulty in understanding this paragraph in an article explaining the movie, 'The Big Short':
Most of us when buying a house take out a loan (mortgage) and pay back
the purchase ...
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Was the 2008 financial crisis caused more by the US subprime mortgage lending or more by an international energy and oil pricing crisis?
I recently read The Big Short by Michael Lewis in which the depiction of the role of subprime mortgage lending in the US and then run away speculation on CDOs are shown to be the central and primary ...
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financial crisis '08: what is it meant by the banks were saved by the states?
Were banks literally saved with tax payers' money? Or is it that states borrowed the banks, consequently, the banks must return this money back at some point? Can someone please give me some ...
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Is quantitative easing part of the ECB's and Fed's mandates?
Is quantitative easing part of the ECB's and Fed's mandates or is it an exceptional policy that they used, especially in the financial crisis 2007-2008?
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Can a currency crisis be the proximate cause of a debt crisis?
I'm just curious whether there are any historical examples of a currency crisis in a country (speculative attacks leading causing a sudden devaluation of currency) leading directly to a debt crisis?
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Estimating aggregate production function with sharp decline during a crisis period
How could one go about estimating a long term aggregate production function, when there is a sharp decline in both factor inputs (i.e. investment and hours worked) and output for a few consecutive ...
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Reason for Economic Slowdown in Western Nations
Why do the U.S and other major Western Countries (e.g, Canada, Germany, in contrast to India, Australia, and China) have stagnated GDP growth? Comparing the GDP growth in the post-2000s from the 1990s ...
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Inflationary recession vs Deflationary recession
I heard the terms deflationary recession & inflationary recession in a podcast and would like to understand what it means, what causes them and past examples.
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What activity or event(s) marks the point at which an economic "bubble" burst?
What general activity or event(s) mark the time at which an economic "bubble" bursts? e.g. the dot-com bubble, etc.
Would it be considered to have "burst" when intrinsic value is less than price?
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Why war can remit the economic crisis？
In the history, like Japan, in the World War II, they had a hand in the war, the root cause is the economic depression.
And in this century, some country use this method many times to remit the ...
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Overview: Crises and their causes
There have been many business cycles in the US over the past 50 years (although less so since the great moderation). Many of us youngsters are too young to remember many of these.
Is there some ...
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