IMSB Overview of financial crisis.docx

Troubles of firms family financial intermediaries and

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
troubles (of firms, family, financial intermediaries and sovereigns); and big extent government support (in the structure of liquidity sustain and recapitalization). As such, financial crises are classically multidimensional measures and can be rigid to typify via single indicator. On the other hand, journalists and economists use great recession as a term to describe a severe, prolonged economic downturn (“Great Recession,” 2012). The longest recession began in December 2007 and ended in June 2009. The consequences from this crisis notably serious in several sides including the unemployment rate surged and real gross domestic product (GDP) fell from its peak to trough. As the financial crisis and recession deepened, measures intended to revive economic growth were implemented on a global basis (Rich, 2013). Like many other countries, fiscal stimulus programs that used different compositions of government spending and tax cuts were instituted by the United States. The possibility of financial crisis and great recession has increased because of several factors which are lower mortgage loan and terms, psychological factor, and also large international cash inflow. All of these factors are linked to an economic bubble which causes financial crisis and great recession. Economic bubble can be called as asset bubble which means when an asset price, such as housing, stocks or gold, become over-inflated and the prices of securities rise so sharply over a short period.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Financial crisis. (n.d.). In Business Dictionary . Retrieved from Claessens. S., & M. A. Kose. (2013). Financial Crises: Explanations, Types, and Implications . International Monetary Fund. Great Recession . (2012, March). Retrieved from - Great- Recession Rich. R. (2013). The Great Recession . Retrieved from
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern