Questions tagged [economic-crisis]

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11
votes
2answers
506 views

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 ...
5
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2answers
113 views

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 ...
4
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2answers
4k views

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.
3
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2answers
400 views

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 ...
3
votes
1answer
199 views

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 ...
3
votes
3answers
65 views

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? ...
1
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2answers
44 views

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 ...
1
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0answers
40 views

“The odds of a bailout in the next century are still nearly 70%.”

In a 2017 Wall Street Journal op-ed, President of the Minneapolis Fed, Neel Kashkari, wrote: The odds of a bailout in the next century are still nearly 70%. I found it surprising that anyone could ...
1
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0answers
25 views

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 ...
1
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0answers
23 views

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?
1
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0answers
25 views

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 ...
0
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1answer
33 views

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 ...
0
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1answer
25 views

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?
0
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1answer
6 views

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, ...
0
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0answers
8 views

Calculting the Exchange market pressure index

Does anyone knows how to calculate the exchange market pressure? I am using the following paper to calculate the EMP, but I am not sure if I am calculating the relative precesion correctly. My Stata ...
0
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0answers
23 views

Would a perishable currency work in a financial crisis today?

I read about perishable currencies in the following article Now my question is if there have been any studies on this and if this may work in modern financial markets?
0
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2answers
130 views

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 ...
-1
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1answer
51 views

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 ...
-1
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0answers
77 views

Is it probable that low oil prices will lead to crisis and collapse of Russia? [closed]

I heard that in 1983 US and Saudi Arabia had a secret agreement to artificially drop oil prices. As a consequence - economical crisis in Soviet Union and collapse as they (Soviets) were very much ...