Financial crisis
A financial crisis is a crisis which touches the stockmarkets, and the markets of the appropriations of a country or a group of country.
A financial crisis can relate to only some countries, or, initiated in a country, can extend by contagion and become world.
If a financial crisis relates to initially only the Financial markets, its aggravation will lead to harmful effects on the real economy, involving a Economic crisis, even a recession. These effects are generally a Tightening of the credit and thus a fall of the Investissement, a Crisis of confidence of the Ménage S.
Typology of the mechanisms of financial crisis
A financial crisis finds its origin in the occurrence of one of the categories of risks managed by the actors of a market ((see Gestion of the risque#Actifs financial)
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Risks of markets: dependant on the variations of the rates or the courses of the credits Risk of rate, Exchange rate risk
- Credit risks: bound to the reliability of a counterpart, even of a whole country.
- Risk related on the operation even of the market and the possibility or not of reselling a credit Risk of liquidity
These risks are not in them-even not exceptional, but on the contrary the base of a financial market. But when the manifestation of the one of them involves an effect Systémique, various phenomena of financial crisis can appear (several of these elements being able to be simultaneous).
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a Tightening of the credit ( credit crunch )
- a Escape towards quality (( flight to quality )
- a Race with the liquidity
- a monetary Crisis
- a Crisis of liquidity ( liquidity squeeze )
List financial crises
- List of the monetary and financial crises
A cyclic phenomenon?
See also: Business cycle
The financial crises seem to occur regularly. They could be intrinsically related to the operation of the market economies.
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