Commentary, Res J Econ Vol: 5 Issue: 3

Financial Crisis

Nuno Almeida

Department of Economics, Catholic University of Portugal, Lisbon, Portugal

Keywords: Accounting and Finance,Accounting Review,Avenues of Investment,Banking Research,Economic Growth,Estimation theory,Financial Crisis

Introduction

In a financial crisis, asset prices see a steep decline in price, agencies and consumers are unable to pay their money owed and financial institutions experience liquidity shortages. A economic crisis is regularly related to a panic or a bank run at some stage in which buyers sell off assets or withdraw cash from financial savings debts because they worry that the price of these belongings will drop if they continue to be in a financial group. Different situations that may be categorized an economic disaster include the bursting of a speculative financial bubble, a stock marketplace crash, a sovereign default, or a forex crisis. A economic disaster can be confined to banks or unfold during a unmarried financial system, the financial system of a region, or economies worldwide.