Definition of economic crisis

The crisis implies a state of affairs in which conflicts prevail and instability rules.

Crises can occur, develop, in any context, as long as they occur in the economic field it will be precisely the occurrence of the economic situation of a nation the one that will suffer in its own flesh the changes, cimbronazos and that of course will end up negatively impacting the normal course of the various actions and economic operations of that economy affected by the crisis.

Critical scenarios of this type can occur as a consequence of some external conjunctural situation that ends up affecting the economy of a particular country. This is probably a situation that can be overcome more easily than others that result from app of equivocal policies on the matter.

And precisely that is another of the causes that can unleash a context of crisis, the bad performances of a government in economic terms, that is, when measures are taken that disturb economic and commercial activities. Also excessive corruption and

public spending they can provoke critical economic situations.

When a region or a country goes through an economic crisis, immediately, a state known as recession which consists of the general decrease in economic activity that was being carried out in normal terms.

All economic variables decrease and in very serious cases the activity ends up paralyzing.
Thus, in this context, it will be possible to appreciate: the decrease in production of goods and services, the fall of the consumptionThe typical products that are acquired when the situation is good, such is the case of houses and cars, will not be bought; the investments They are also paralyzed, since the money that was thought to be invested in a business or in the purchase of something decides to postpone, to save, in case the state of things worsens; abrupt drop in the levels of creation of new jobs and in many extreme cases the dismissal of employees with the mission of reducing the expenses of a company, among others, can occur.

Topics in economic crisis