What is Global Economic Crisis?

 

An international economic crisis is a situation that can lead to the breakdown of major parts of the global economic system and cause global economic losses. These crises are usually caused by financial crises, paradigm shifts, currency market disruptions, financial institution losses, price and value changes, etc.

These crises can be of different types based on size and indicators, such as:

1. Financial crisis: eg, the controversial financial crisis of 2008, which spread from North America to revolutionary finance.

2. Currency Market Disturbances: eg, the creation of volatile markets due to foreign exchange fluctuations or changes in the value of certain currencies.

3. Principle change: i.e. uncertainty of a country's currently healthy or productive economic output.

Such crises usually have a global impact, causing economic damage, unemployment, economic order, the establishment of financial institutions, and economic autonomy.