Chapter 33
Economic Crises
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
Section 1
Fundamentals of Banking Crises
![Thumbnail](../../../../../figures.boundless-cdn.com/21215/raw/29-wall-street-crash-graph.jpg)
Causes of Banking Crises
Banking crises can be caused by inadequate governmental oversight, bank runs, positive feedback loops in the market and contagion.
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Consequences of Banking Crises
Banking crises have a range of short-term and long-term repercussions, domestically and globally, that reduce economic output and growth.
Section 2
The 2007-2009 Crisis
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Causes and Immediate Impacts of the Crisis
Banks, consumers, and the government all contributed to improper borrowing and lending, which in turn created a downward spiraling economy.
![Thumbnail](../../../../../figures.boundless-cdn.com/21233/square/recovery-joblossgain.jpg)
Recovery
The objective of economic recovery when in crisis is to stabilize the economy and recapture the value lost using economic stimulus strategies.
![Thumbnail](../../../../../figures.boundless-cdn.com/21234/raw/gdp-real-growth.jpg)
Global Impacts
The 2007-2009 economic collapse was damaging not only to the U.S. but also global markets, driving the global economy into recession.
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