Financial crises

worldwide economic depression (1929–1939)

thumb|upright=1.8|100 quintillion (1020) Hungarian pengő|pengő, the largest denomination bill ever issued, Hungary, 1946. 1 sextillion pengő notes were printed but never issued. thumb|upright=1.8|Hyperinflation in Venezuela represented by the time it would take for money to lose 90% of its value (301-day [[rolling average, inverted logarithmic scale)]]

situation in which financial assets suddenly lose a large part of their nominal value

2007–2009 international economic decline

economic phenomenon of very high prices driven by speculation

banking crisis when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future

situation in which grave doubt exists as to whether a central bank has enough forex reserves to maintain an exchange rate, often with a speculative attack in forex markets

banks meant to manage illiquid resources

risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy, as opposed to specific risk associated with any one individual entity, group or component of a system

sudden reduction in the general availability of loans or credit or a sudden tightening of the conditions required to obtain a loan from banks

sudden, major collapse of asset values which generates a credit cycle or business cycle

situation in which a government loses the ability of paying back its governmental debt

financial institution below zero net worth

acute shortage of liquidity

scenario in which financial shocks spread to other financial sectors

economic model of bank runs and financial crises

Inflation that develops at a rapid pace