Question

What are the causes of financial crises in late 18th century​

Answer 1

Answer:

I suggest there are six root causes of the financial crisis:

Leverage. Excess leverage is at the center of all banking crises, by definition. ...

Liquidity. ...

Too Big To Fail. ...

Conflicts of Interest. ...

Taxes and Subsidies. ...

Governance.

Answer 2

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A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles, currency crises, and sovereign defaults. Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy (e.g. the crisis resulting from the famous tulip mania bubble in the 17th century).