What is economic crisis? Its impact
An economic crisis refers to a condition in which the economy is shaken unexpectedly and rapidly spreading. The trigger can take various forms, such as a debt crisis, a banking crisis, an asset bubble burst, and a balance of payments crisis. For example, a debt crisis happens when the risk of default soars. The public authority's ability to repay debts falls. Government debt increases dramatically, higher than the increase in tax income. The public authority cannot acquire any more cash because investors have lost faith in the public authority's ability to pay. A few economists argue that most economic downturns or dejections originate from financial crises. One notable example is the Great Despondency, which started with a bank run and a stock market crash. The 2008-2009 subprime mortgage crisis also triggered a serious downturn in the US and spread around the world. The cause was the bursting of the real estate bubble. Real estate costs have risen such a lot of that they ha