Flashcards: Understanding Financial and Economic Crises — 20 cards

All cards

1Question

Types of crises — categories?

Answer

General, economic, and financial crises.

2Question

Crisis cycle phases — first?

Answer

Expansion phase.

3Question

Financial crisis development — stages?

Answer

Slow growth, boom, euphoria, crisis, decline, recovery.

4Question

Crisis factors — high?

Answer

Debt levels, financial innovation, demand mismatch.

5Question

Economic impact — includes?

Answer

Production decline, unemployment, systemic destabilization.

6Question

Crisis propagation — mechanisms?

Answer

Trade, financial markets, banking contagion.

7Question

Tulip Mania — crisis type?

Answer

Speculative bubble, 1630s.

8Question

1987 crash — key feature?

Answer

Sudden stock decline, minor real economy impact.

9Question

Mexican Peso Crisis — trigger?

Answer

Devaluation, loss of investor confidence.

10Question

Crisis theories — main?

Answer

Kindleberger (bubbles, panics, crashes), Minsky (endogenous instability).

11Question

Minsky's hypothesis — core idea?

Answer

Stability breeds instability via risk-taking.

12Question

Minsky's debt phases — first?

Answer

Hedge financing.

13Question

2008 crisis — origin?

Answer

US housing bubble burst, risky financial products.

14Question

Crisis transmission — via?

Answer

Trade links, cross-border finance, banking failures.

15Question

Historical example — Tulip Mania, year?

Answer

1630s.

16Question

Crisis cycle — irrational phase?

Answer

Euphoria.

17Question

Crisis cycle — sharp decline?

Answer

Crisis phase.

18Question

Crisis impact — on markets?

Answer

Asset devaluation, liquidity shortages.

19Question

Crisis factors — external?

Answer

Shocks like policy changes or international events.

20Question

Minsky's stages — final?

Answer

Crisis when debt becomes unsustainable.

Test yourself with the quiz

Test your knowledge with 10 questions on Understanding Financial and Economic Crises.

1. According to the typical sequence of crises development, which type of crisis generally occurs first?

2. In the sequence of crisis cycle phases, where does the 'euphoria' phase occur?

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