Economics CrisisSpeaker：杨光Yang GuangFrom Business school2012011694OUTLINE●Causes●Prominent Events In History●Main characteristics●Influences●LessonsCAUSES●The mistakes of economic policy;●The shortage of the raw material( oil crisis);●Natural disasters;●The consequences of the globalization;●The wrong of financial policies；…●The primary cause of economic crisis is the capitalistic system. Theradical contradiction of the capitalism is between the sociality of the product and the private possession of the capitalism. Obviously because of this, it is inevitable that the economic crisis happens every decades of years regularly.Prominent Events In History The 1929-1933 economic crisis in capitalist worldIntroductionDuring this period,the stock market on Wall Street in New York City got into a serious situation that people started selling shares madly due to the slump of share prices.Later,its effects spread to the whole world:banks faced bankruptcy one by one.At the same time,factories along with corporations closed down;the rate of unemployment jumped up;the income of farmers went down.The disaster continued till 1933 and it took several years for many countries to regain prosperity.Influences●Economic decline, stock marketcrash ，acclaim, individualbankruptcy●Social turmoil ，such as parade anddemonstration and bashing;●Coup d'état such as fascism inGermany, Italy and Japan;●Adjustments in the nationaleconomy, such as Roosevelt‘s newdeal；●Becoming the root of wars: for example, Germany, Italy and Japanlet loose the dogs of World War II in order to in order to transfer the crisis to other countries ;●The transformation of economic thoughts: from economic liberalismto state intervention in the economy or dirigismusm;The American economic（2008）InfluencesThe American economic crisis is also called the subprime crisis. The relaxing regulations on the credit and the persistently increasing tendency in the real estate and stock resulted in the final collapse of economy. Thousands of people lost their jobs and the stores closed down in the Wall Street overnight.Affected Countries●AmericaOf course, the America’s first place in the world economy was inescapably influenced. And in order to transfer the crisis to other countries,the America dollar was devalued. Obviously,America is just like a schemer，it successfully gets away from the crisis and leaves the world curing itself. Anyway, America’s economy is recovering from the economic shadow while the other countries are in slump.And in this worldwide crisis, the America’s subprime crisis is the worstwhich is considered to be the chance of the reconstruction of the world financial system.●ChinaThe economic crisis first happened in the littoral area of China and then affected the backland. At the beginning, the money devalued resulting in the inflation which mainly caused the crisis. Later many factories closed down and people were out of jobs. To a degree, the government’s powerful regulation has successfully controlled the serious situation . As a matter of fact, our economic growth mainly depends on export. The world’s slump sharply affects our export.We are especially affected by the European countries and America.●IcelandInfluenced by the 2008 economic crisis,Iceland was faced with bankruptcy.Earlier,Huge losses in the investment abroad resulted in Iceland's banking crisis,so the government resorted to the rescue plan which,however,deteriorated the financial system.It has been days since Iceland's economic crisis,but Icelanders'nightmare has not finished yet.The premier has alledged that the economic crisis is likely to happen again in the near future.●BritainPossibly gets into another Great Depression.●GreeceCauses riots and probably quitting the Euro Zone.●UkraineAlmost encounts a nationwide economic collapse.Tulip Mania in 1637In the beginning,the unbalanced phenomenon between the supply and demand of tulips made the price of these flowers soar.Then,some speculators invaded the market driven by enormous benefits.Finally,many civilians got involved in this incident to get rid of poverty,which caused a steep fall in the price of tulips.South Sea Bubble in 1720In the 18th century,British owned considerable idle funds.Seeing a huge business opportunity,South Sea Company based in Britian reached a bargain with the government and issued large quantities ofstocks.However,disappointed at the real performence of the company,many insiders as well as officials had to sell their shares,thus leading to a severe collapse in the company's stock price.The Bubble completely shattered!Main characteristicsThere are some slight differences in the phenomena of economic crisis between before and after World War。