Exploring the Principles and Laws of Financial Crisis: from the Subprime Mortgage Crisis to New Crown Epidemic

DOI

10.2991/aebmr.k.210319.025How to use a DOI?

Keywords

Financial market, global economy, financial crisis, subprime mortgage crisis

Abstract

Financial crisis has stimulated debates among analysts as they strive to detect and reduce the impact of recession before it undermines the global economy’s development. The challenges that the financial crisis imparts in nations are becoming intense due to globalization. Moreover, capital markets are evolving from domestic to national boundaries, consequently attracting fiscal challenges. This exposes the global economy to the subprime mortgage crisis. Contextually, the research topic focuses on exploring the principles and laws of financial turmoil that promote economic stability. Besides, it highlights crucial experiences that act as lessons. The research focuses on five types of financial crises which include, - banking crisis, currency crisis, public debt crisis, inflation crisis, and balance of payment crisis. Afterward, causes of financial instability and consequences act as tools that help assess laws and principles that guide global economic development. By analyzing secondary data from past financial reports, this paper displays that capital markets’ amalgamation impacts the global economy whenever one nation encounters setbacks from poor monetary policies. Notably, speculators and pandemics impact on the subprime mortgage crisis. The prospective suggestions for follow-up research are placed in the conclusion.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wang Shuhao
PY  - 2021
DA  - 2021/03/22
TI  - Exploring the Principles and Laws of Financial Crisis: from the Subprime Mortgage Crisis to New Crown Epidemic
BT  - Proceedings of the 6th International Conference on Financial Innovation and Economic Development (ICFIED 2021)
PB  - Atlantis Press
SP  - 136
EP  - 139
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210319.025
DO  - 10.2991/aebmr.k.210319.025
ID  - Shuhao2021
ER  -