Types of financial and economic crisis

Financial crises have caused much debate among different economists. They have attempted to explore any possibility of detecting and preventing crises before they cause the damages that will require way more time and energy to repair the situation and bring the economies back on the right track of sustainable development. The purpose of this study is to analyze different types of financial crises that have affected the economies of the world in order to draw lessons from their experiences. Analysis of this study is divided into four types of financial crises: Banking crisis, speculative bubbles and the market failures, international financial crisis and the broader economic crisis. The methodological approach in this research is of qualitative nature. The materials used are derived from various books and academic journals of academics and professionals who have expertise in the area of financial crisis. This study concludes that appropriate monetary and macroeconomic policies are fundamental basis to detect and manage eventual crises that might occur. This research reveals that countries in transition and those moving from closed system of economy into the market economy are more likely to be attacked by speculators in comparison with countries that have more developed capital markets. In addition, this study shows that integration of capital markets among countries have an impact on their economies if any of them face financial crisis due to chain effect