Definition

Economic collapse is any of a broad range of bad economic conditions, ranging from a severe, prolonged depression with high bankruptcy rates and high unemployment, to a breakdown in normal commerce caused by hyperinflation, or even an economically caused sharp rise in the death rate and perhaps even a decline in population.

What is 'Economic Collapse '

A complete breakdown of a national, regional or territorial economy. An economic collapse is essentially a severe version of an economic depression, where an economy is in complete distress for months, years or possibly even decades.

A total economic collapse is characterized by economic depression, civil unrest and highly increased poverty levels. Hyperinflation, stagflation and financial-market crashes can all be causes. Government intervention is usually necessary to bring an economy back from collapse, but can often be slow to remedy the problem.

Explaining 'Economic Collapse '

The Great Depression in the United States is a prime example of an economic collapse. The 1929 stock market crash brought on a collapse that lasted for many years and saw high levels of poverty. Well-known economist John Maynard Keynes claimed this was from the total lack of government involvement in the economy or the financial markets.

Further Reading

Trade finance and the great trade collapse
www.aeaweb.org [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …

Finance and economic breakdown: modeling Minsky's “financial instability hypothesis”
www.tandfonline.com [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …

The great crash of 2008 and the reform of economics
www.elgaronline.com [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …

Greece and the inter-war economic crisis
ideas.repec.org [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …

The economic collapse
muse.jhu.edu [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …

Financial fragility and economic performance
academic.oup.com [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …

Business cycles, hypertension and cardiovascular disease: evidence from the Icelandic economic collapse
www.tandfonline.com [PDF]
… In fact, well before the collapse of Bear Stearns, Roubini predicted that two major broker … Within months Bear was a distant memory and Lehman Brothers had collapsed … he correctly warned that the disease would soon spread overseas, turning a national economic illness into a …