2. Group Members
Muhammad Furqan Hameed
ID F2019270013
Ghias ijaz Malik
ID F2019270004
Faisal Saleem
ID F2018273006
Rida Zahira
ID F2019275021
Tania Amjid
ID F2019275022
3. 1920 World War:
If we go through the history then we can clearly see that world war 1 has major
effects and causes on the world as a whole because that world war not only effected
the markets of European countries.
Germany, Italy, Japan and America collapsed suddenly and as a result of this war the
prices of everything increased and the inflation increased up to 11%-14% in
different regions of the world.
America lost the assets of nearly 12 million dollars in that war.
4. 1937 Great Recession:
This recession was one of the longest recessions of the history because this
recession was continued for almost 13 months and its term also includes the months
of the year 1938.
America was the particular country which was effected most due to this recession
and its unemployment increased from 14% to 19% in 1938 and per hour
When the per hour income started to increase and also the employment ratio also
started.
5. 1971 Fixed exchange rate system broke down:
That system of fix exchange rate was also called Bretton Woods System.
This system was developed to do the trade on the basis of Gold among the
different countries of the Europe.
America was the controlling Authority and due to this benefit the America
did not have to maintain its Balance of Payment Deficit and this thing was
difficult for other countries
6. 1973 Shocks to price of oil, high inflation, and volatile
interest rates:
The prices of the oil in 1973 started to increase when the oil producer countries of
the world stopped the delivery of the oil to America as a result the prices of the oil
started to increase .
If we look into the history then we can easily analyze that due to the high
employment in the region the inflation rate also increased and the consequence of
this inflation was that the interest rate also started to increase in the region and
even the interest rate goes up to the 20% rate which is considered one of the
highest interest rate in the history of the America.
7. 1987 Black Monday, which saw a 23% decline in
U.S. stock price:
On that day, the markets of the developed and developing countries declined
suddenly and the day was October 19, 1987 and in the history of Australia and
New Zealand this day is recalled as the black Tuesday.
American stock markets faces the decline up to 40% in a single day and that
day was not less than the fearful dream for many countries.
8. 1989 Japan Stock Market Bubble deflated:
This was the time when the government of the Japan was taking Decisions to
strengthen its economy and to stabilize its currency against the American
Dollar.
It is not only the 1 year this period started from 1986 and ended in 1991
The Government of Japan and during this time period the prices of stocks and
real estate were very high and when the dollar started to get strength against
the Yen then suddenly the stock market collapsed again.
9. 1997 Asian contagion decimated Asian equity
markets:
This was the time when the Asian countries faced their first recession in any
kind for the first time and this crisis was started from the Thailand when
Thailand decided to float its currency.
The other country which was greatly affected due to this problem and due to
this problem the president of the Indonesia had to step down from his Chair
and the debt on south Asian east countries rose from 100% to 167% due to
this crisis.
10. 1998 Russian debt default and the collapse of the
Long-term capital management hedge fund:
It is example of the running business deals which were effects by the crisis of Asian
countries it was one of the agreement which was made to run the business
successfully in Russia.
In 1998 it faced the loss of $4.6 billion in less than four months of 1998 then 14
financial institutions made an agreement to give $3.6 billion for rehabilitation under
the supervision of company named Federal Reserves and finally the fund dissolved
in 2000.
11. 2001 September 11 attacks on WTC and U.S equity
market collapse:
When the plane hit the two towers of the America then the stock market collapse
suddenly and the major company’s offices that were located in those two towers cannot
operate from the next day and the other major business hub of America remain closed
until September 17 which was the longest streak after 1933.
America had to take the strict decisions to protect their citizens and they invested the
heavy amount to secure the country.
12. 2007-2009 Credit crises resulting from mortgage market
meltdown and huge amount of bank leverage:
It was one of the incidents of the history when for one more time the world
faced the great recession.
During this time the inflation rate increased and the world faced many
challenges during this time period there were many causes of the crisis,
according to the experts there were different reasons of this recession
