Financial crises can take many forms and have various causes. Modern financial crises are typically characterized by instability in currency or stock markets that spreads globally due to increased interconnection between national economies. These crises often originate from imbalances such as large deficits, unsustainable debt levels, or asset price bubbles that eventually burst.
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Lecture #11&12
Financial crises can take many forms and have various causes. Modern financial crises are typically characterized by instability in currency or stock markets that spreads globally due to increased interconnection between national economies. These crises often originate from imbalances such as large deficits, unsustainable debt levels, or asset price bubbles that eventually burst.