DOI: 10.5897/AJBM10.1697 ISSN 1993-8233©2011 Academic Journals Review Causes and effects of economic crisis in history

The economic crisis which started in the U.S. (one of the biggest economies of the world) has spread all over the world. Wavelength made it global by affecting financial market. We analyzed crisis under three main titles in this study: Firstly, we studied economic crisis in history; secondly, we analyzed causes of recent global crisis; and thirdly, we analyzed the effects of financial crisis on developed and developing countries. There are some similarities in the causes and effects of economic crisis on Ottoman Empire in the 1929s, and in the recent one. This study’s aim is to highlight the importance of economic crisis through an historical process. Economic crisis signified its destructiveness in the last four years like in history. The cause of the last crises was identical, but its effects were at different severities as compared to the different economic levels of several countries. It was seen that the recent crisis ’ effect was more severe in developed countries than in developing ones, such that the world’s production decreased, unemployment rate increased, and lots of corporations went into bankruptcy