Overview
The economic history of crises provides valuable insights into how financial downturns shape economies and societies. By studying past crises, such as the Great Depression and the 2008 financial crisis, we can understand their causes, impacts, and the lessons learned. This knowledge is crucial for p...
Key Terms
Example: The 2008 financial crisis was triggered by the collapse of mortgage-backed securities.
Example: The economy entered a recession after two consecutive quarters of negative GDP growth.
Example: High inflation can erode purchasing power, making goods more expensive.
Example: The Great Depression led to widespread unemployment and poverty.
Example: Central banks adjust interest rates to influence economic activity.
Example: Keynesian policies advocate for increased government expenditures during a recession.