Economic crises

Economic crises are periods of significant financial instability, often marked by severe downturns in economic activity. They can arise from various factors, such as excessive debt, poor investment decisions, or external shocks like natural disasters or geopolitical events. During a crisis, businesses may close, unemployment rises, and consumers reduce spending, leading to a downward spiral. Governments and central banks often intervene with policies like bailouts or stimulus measures to stabilize the economy. Understanding these crises helps us recognize the interconnected nature of global economies and the importance of sound financial practices.