Economic Collapse



A complete breakdown of a national, regional or territorial economy. An economic collapse is essentially a severe version of an economic depression, where an economy is in complete distress for months, years or possibly even decades.

A total economic collapse is characterized by economic depression, civil unrest and highly increased poverty levels. Hyperinflation, stagflation and financial-market crashes can all be causes. Government intervention is usually necessary to bring an economy back from collapse, but can often be slow to remedy the problem.


The Great Depression in the United States is a prime example of an economic collapse. The 1929 stock market crash brought on a collapse that lasted for many years and saw high levels of poverty. Well-known economist John Maynard Keynes claimed this was from the total lack of government involvement in the economy or the financial markets.

  1. The Great Recession

    The steep decline in economic activity during the late 2000s, which is generally ...
  2. Poverty

    A state or condition in which a person or community lacks the financial resources ...
  3. Economic Blight

    The visible and physical decline of a property, neighborhood or city due to ...
  4. Great Depression

    An economic recession that began on October 29, 1929, following the crash of ...
  5. Slump

    A slang term denoting a period of poor performance or inactivity in an economy, ...
  6. Economic Cycle

    The natural fluctuation of the economy between periods of expansion (growth) ...
  7. John Maynard Keynes

    An author and economist who is well-known for his stance that national governments ...
  8. Pump Priming

    The action taken to stimulate an economy, usually during a recessionary period, ...
  9. Recession

    A significant decline in activity across the economy, lasting longer than a ...
  10. Depression

    A severe and prolonged downturn in economic activity. In economics, a depression ...
Related Articles
  1. Hedge Fund Failures Illuminate Leverage ...
    Options & Futures

    Hedge Fund Failures Illuminate Leverage ...

  2. Do stimulus checks work?

    Do stimulus checks work?

  3. How Will The Subprime Mess Impact You?
    Personal Finance

    How Will The Subprime Mess Impact You?

  4. The Rise And Demise Of New Century Financial

    The Rise And Demise Of New Century Financial

  5. What Caused The Great Depression?

    What Caused The Great Depression?

  6. The Crash Of 1929 - Could It Happen ...
    Personal Finance

    The Crash Of 1929 - Could It Happen ...

  7. Dissecting The Bear Stearns Hedge Fund ...

    Dissecting The Bear Stearns Hedge Fund ...

  8. 5 Tips For Recession House Hunters
    Home & Auto

    5 Tips For Recession House Hunters

  9. When Financial Crisis Strikes The Bank ...

    When Financial Crisis Strikes The Bank ...

  10. The Taylor Rule: An Economic Model For ...

    The Taylor Rule: An Economic Model For ...

comments powered by Disqus
Hot Definitions
  1. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  2. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  3. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant
  4. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  5. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
  6. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
Trading Center