Economic crisis

1. Economic crisis Presented by Victoria Kuncheva

2. meaning • A situation in which the economy of a country experiences a sudden downturn brought on by a financial crisis. • An economy facing an economic crisis will most likely experience a falling GDP, a drying up of liquidity and rising/falling prices due to inflation/deflation.

3. International financial crisis • Banking crisis- Sudden collapse of the domestic banking system • Currency crisis- Loss of credibility of fixed exchange rate system • System financial crisis/sudden stops - breakdown of system of International capital flows • Sovereign Dept crisis- Unable to pay off depts

4. Financial crisis of2007-2008 • The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst economic crisis since the Great Depression ot the 1930s

5. Financial crisis 2007-2008 • https://m.youtube.com/watch?v=csRQhz_2Ls8

6. The national‘S First economic crisis • Most of National dept was in a form of bonds - a certificate for an a amount of money the government promised to pay back with interest • Many of bonds were sold to speculators for much less then they were worth .

7. FINANCIAL CRISIS & RECESSIONS • 1. BANKS CREATED TOO MUCH MONEY… • 2. …AND USED THIS MONEY TO PUSH UP HOUSE PRICES AND SPECULATE ON FINANCIAL MARKETS • 3. EVENTUALLY THE DEBTS BECAME UNPAYABLE • 4. THIS CAUSED A FINANCIAL CRISIS • 5. AFTER THE CRISIS, BANKS REFUSE TO LEND, AND THE ECONOMY SHRINKS

8. Thank you for attention