Economic crisis
An economic crisis is a severe disruption in production, trade, credit, or employment that strains institutions and sharply reduces economic activity.
Financial crisis: A breakdown in financial markets or institutions that disrupts credit, asset values, or payments. Bank failures and frozen lending can transmit financial distress into production and employment.
Great Depression: A worldwide economic contraction beginning in 1929, marked by mass unemployment, bank failures, and falling output. Its depth and duration made it the defining modern example of systemic economic collapse.
Asset bubble: A rapid rise in asset prices driven largely by expectations of further increases rather than underlying value. A collapse in inflated prices can damage household wealth, collateral, and financial institutions.
Unemployment: The condition of people without jobs who are available for and seeking work. Job losses are among the most direct and lasting effects of collapsing economic activity.
Recession: A significant decline in economic activity spread across an economy and lasting more than a brief period. A recession is a defined downturn; an economic crisis also implies severe disruption or institutional strain.
Credit crunch: A sharp reduction in the availability of loans, often despite demand from creditworthy borrowers. Restricted business and household borrowing can deepen a downturn.
Great Recession: The severe global downturn associated with the financial crisis of 2007–2009. It shows how housing losses and financial contagion can cause a worldwide contraction.
Sovereign debt crisis: A situation in which a national government cannot reliably meet its debt obligations or borrow on sustainable terms. Government borrowing distress can destabilize banks, public services, and private investment.
Poverty: A condition in which people lack resources to meet basic needs and participate in society. Income loss and reduced public support can push households into poverty.
Stagflation: The combination of high inflation, weak economic growth, and elevated unemployment. Stagflation describes a difficult macroeconomic condition that may occur without a systemic crisis.