A collapse in the price of financial obligations, which may lead to a collapse in the economy. The major financial crisis in the history of world finance took place after the Wall Street Crash of 1929. This crisis led to a widespread failure in the US banking system and the interwar recession. Recent years have seen a number of financial crises, notably in Russia, South-East Asia, and Latin America. These crises have had major impacts on the economies of the countries that suffered them, but the impacts have not spread to the international economy.
Subjects: Financial Institutions and Services.