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Economics vocabulary · Economic News and Data

Financial crisis

Meaning in economics, with examples

nounCore term

In economics, financial crisis means: A sudden and serious breakdown in the financial system, for example when banks fail, asset prices collapse or a country can no longer borrow.

In Turkish: finansal kriz, mali kriz, finans krizi

How it is used

The global financial crisis of 2007–2009 is discussed so often that it is shortened to GFC. A banking crisis, a currency crisis and a debt crisis are types of financial crisis. A crisis breaks out, spreads and is contained. The plural is crises.

Example sentences

  1. Many banks needed public support during the financial crisis of 2008.

  2. It took the country almost a decade to recover from the financial crisis.

Common collocations

  • global financial crisis
  • a financial crisis breaks out
  • in the wake of the financial crisis
  • banking crisis
  • recessionA significant fall in economic activity lasting months, with falling output, income and jobs; often defined as two quarters in a row of shrinking GDP.
  • bubbleA situation in which the price of an asset such as housing or shares rises far above its real value because buyers expect it to keep rising, until it eventually collapses.
  • bailoutFinancial help given by a government or an international body to a company, bank or country that is about to collapse or default.
  • defaultTo fail to pay interest or repay a loan or bond on time; the noun default describes this failure.
  • liquidityHow easily money is available in the financial system, or how quickly an asset can be turned into cash without losing value.

More terms: Economic News and Data

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This page explains English vocabulary for learners. It is not financial advice.