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The Great Depression 1932
On October 25, 1929 the New York Stock Exchange saw 13 million shares being sold in panic selling.
• During the 1920s the American economy grew at 42 percent and stock market values had increased by 218 percent from 1922 to 1929 at a rate of 20 percent a year for 7 years. No country had ever experienced such a run-up of stock prices which attracted millions of Americans into financial speculation. -
The Suez Crisis
On July 26, 1956, Egypt nationalized the Suez Canal Company. France, Israel and United Kingdom initiated joint military action, with Israel invading the Sinai on October 29, 1956. The military action lasted two months and in the midst of the turmoil and uncertainty, a financial crisis erupted. -
The International Debt Crisis
The international debt crisis began on August 20, 1982
• Mexico could not repay the loan that was due and engulfed 20 countries. This was the commencement of a decade long international debt crisis. -
The East Asian Crisis
A major economic crisis struck many East Asian economies in 1997. The East Asian economies, which were witnessing rapid growth and improvement in living standards, got embroiled in a severe financial crisis. Interrupting a decade of unparalleled economic growth, prosperity and promise, the crisis revealed the precariousness of the systems of economic governance in the region. -
The Great Recession
In 2008 severe recession unfolded in the United States and Europe which was the deepest slump in the world economy since 1930 and first annual contraction since the postwar period. The financial crisis which erupted in 2007 with the US sub-prime crisis deepened and entered a tumultuous phase by 2008. -
The European Crisis 2010
The year 2010, the European crisis unfolded.
• The euro area economy was in a terrible mess.
• The euro currency area had become too large and diverse – with the anti-inflation mandate of the European Central Bank too restrictive. There were no fiscal mechanisms to transfer resources across regions.