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Economic Collapse

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


Capital-markets crises and economic collapse in emerging markets: An informational-frictions approach
pubs.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 …

Trade finance and the great trade collapseTrade 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”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 economicsThe 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 crisisGreece 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 collapseThe 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 performanceFinancial 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 collapseBusiness 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 …



Q&A About Economic Collapse


Who was John Maynard Keynes?

He was an economist who claimed that the Great Depression in the United States was due to total lack of government involvement in the economy or financial markets.

What are the characteristics of an economic collapse?

Economic depression, civil unrest and increased poverty levels.

What was The Great Depression?

The Great Depression was an unprecedented global economic downturn starting in 1929. It led to widespread poverty and suffering, hunger, unemployment, homelessness, and political unrest around the world. Although it originated in North America it eventually spread to most parts of the globe lasting until about 1939. It was marked by wholesale destruction of capital values and per capita output alike almost everywhere with no country being spared at least temporarily during this period. In some countries recovery took place within only a few years while others were still recovering after more than 20 years later when World War II came along breaking out on September 1939 ending this period for good all over Europe except for Russia which had its own problems at hand but would not recover until after World War II ended on May 1945 bringing back prosperity once again but only for another decade or so before everything collapsed once again into another Cold War leading up to yet another major worldwide crisis known as The Oil Crisis Of 197-8 where oil prices quadrupled overnight causing massive inflationary pressures throughout much of the industrialized world leading up to yet another major worldwide crisis known as Black Monday where stock markets crashed across much of Asia Pacific including Japan's Nikkei Stock Average

What does he claim caused the Great Depression?

The 1929 stock market crash brought on a collapse that lasted for many years and saw high levels of poverty.

How did he claim it happened?

He claimed it happened from total lack of government involvement in the economy or financial markets.

What is an economic collapse?

An economic collapse is a complete breakdown of a national, regional or territorial economy.

How does one define economic collapse?

To understand what constitutes economic collapse is often difficult. This is because there are few well documented cases of such events. One case that has been extensively studied is The Great Depression.

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