After the sad events of 2008, every year, with bated breath, we expect new economic shocks, rising unemployment, inflation, devaluation, stagnation and other troubles.
Meanwhile, analysts argue that global crises are shaking the economy at an enviable frequency. In order to clearly demonstrate this pattern, we bring to your attention Top 10 global financial crises.
10. Crisis of 1825
Historians often refer to the events of 1825 as the first international financial crisis. In the early 1820s, several Latin American countries gained independence at once. The flow of investments from Great Britain rushed here, and speculative mania began on the London Stock Exchange. As a result, the British stock market crashed, the banking crisis quickly spread to the continent and overseas - to Latin America.
9. The crisis of 1907
The crisis was triggered by the Bank of England, which raised its interest rate from 3.5% to 6% to replenish its own gold reserves. The event caused an outflow of capital from overseas and triggered a fall in the US stock market. In general, the crisis affected the UK, USA, France, Italy and a number of other countries.
8. Crisis of 1914
The outbreak of World War I triggered an international financial crisis. The money and commodity markets of dozens of countries have collapsed. In the United States, Great Britain and several European countries, banking panic was alleviated only by timely interventions by central banks.
7. "Great Depression" 1929-1933
The reason for the famous "depression" was the sharp increase in the purchasing power of the currencies of the Scandinavian countries, Italy, England and the United States in the postwar years. On October 24, 1929, a fever broke out on the New York Stock Exchange. Shares of the largest companies lost 70% of their value. Factories began to close and unemployment reached alarming proportions. Ultimately, the crisis affected at least 30 million people in the United States and Europe.
6. The 1987 crisis.
On Black Monday, October 19, 1987, the American stock market crashed. The Dow Jones index fell 22.6% or 508 points. Following the USA, the markets of Canada, Australia, New Zealand, Hong Kong, and Latin America "collapsed". It took 21 months to return to the pre-crisis state.
5. Mexican crisis of 1994-1995
Economists often refer to this crisis as "Tequila". Despite the fact that it affected mainly the Mexican market, the governments of many countries for the first time in history provided significant financial assistance in order to prevent the crisis from spilling over beyond the borders of Mexico. The United States alone has formed a $ 20 billion credit package for the country. By the way, this has made the Mexican economy dependent on the US economy for many years.
4. The 1997 Asian Crisis
The crisis was triggered by the collapse of the Hong Kong stock market, which caused a serious resonance in all countries of Southeast Asia. Over time, the wave overtook the markets of Europe and the United States. It is believed that this crisis to some extent influenced the events of August 1998 in Russia.
3. Crisis of 1998
The crisis hit the Russian economy the hardest.But there is every reason to call it international, since Ukraine, Kazakhstan, Lithuania, Estonia, Moldova, Latvia and Belarus suffered. In six months, the ruble has fallen by more than three times. The Russian banking system has been in a state of collapse for at least a year. The number of depositors who have lost all their savings is in the hundreds of thousands.
2. Oil crisis of 1973-1974
Oil prices skyrocketed from $ 3 to nearly $ 12 a barrel. OPEC countries have reduced production and announced that they will not supply "black gold" to countries that support Israel. The oil crisis contributed to an increase in Soviet oil exports.
1. The 2008 crisis
The crisis began in the United States. Among the reasons, analysts name inflated commodity prices, and huge amounts of debt at low interest rates. Financial analysts are still arguing about whether the crisis is over or whether it is in full swing. Howbeit, the 2008 crisis is considered the most global in the history of the world economy.