Download - Crises & Unemployment
Crisis and Unemployment
bySerdar Bayraktaroğlu
Basic Definitions
What is a Crisis?
A Crisis is an event that can destroy or affect an entire organization.
11Little time in which to act or respond
22 Missing or uncertain information
33 A threat to resources or people.
Characteristics of A CrisisCharacteristics of A Crisis
Basic Definitions
What is An Economic Crisis?An economic crisis refers to a period in which undesigned and imponderable progress causes to negative macro - and microeconomic consequences.
Types of Economic Crises
Banking crises1
Speculative bubbles and crashes2
International financial crises3
Wider economic crises4
Types of Economic Crises
Banking crises1
Banking crisis is a type of financial crises in which a large number of panicky customers try to withdraw their funds from the bank they believe may fail.
Types of Economic Crises
What is a bubble ? An economic bubble is “trading with high prices that are considerably at variance with intrinsic values. Bubbles generally have a negative impact on the economy because they tend to cause misallocation of resources into non-optimal uses. In addition, the crash which usually follows an economic bubble can destroy a large amount of wealth and cause negatively economic circumstances.
Speculative bubbles and crashes2
Types of Economic Crises
When a country that maintains a fixed exchange rate is suddenly forced to devalue its currency because of a speculative attack, this is called a currency crisis or balance of payments crisis.
International financial crises3
Types of Economic Crises
Recession & Depression
Wider economic crises4
What is a recession ?A downturn in economic growth lasting several quarters or more is usually called a recession
What is a depression ?An especially prolonged recession may be called a depression.
Breakdown in Production & ServicesBreakdown in Production & Services
Causes of Economic Crises
Organizational Causes
Inactive LeadershipInactive LeadershipInactive LeadershipInactive Leadership
Inactive Monetary ManagementInactive Monetary ManagementInactive Monetary ManagementInactive Monetary Management
Incapable AuditingIncapable Auditing
Disordered Balance SheetsDisordered Balance Sheets
Inactive Financial ManagementInactive Financial Management
Liquidity ProblemsLiquidity Problems
Extreme GrowthExtreme Growth
HierarchyHierarchy
CentralismCentralism
Organizational StructureOrganizational StructureOrganizational StructureOrganizational Structure
Receivable collecting problemsReceivable collecting problems
Shortfall of cashShortfall of cash
Coordination FailureCoordination Failure
Unplanned ManagementUnplanned Management
Management Without VisionManagement Without Vision
Lack of CommunicationLack of Communication
Causes of Economic Crises
NonOrganizational
Causes
TTechnologic echnologic CChangeshangesTTechnologic echnologic CChangeshanges
EEcologic cologic CChanges and hanges and NNatural atural DDisastersisastersEEcologic cologic CChanges and hanges and NNatural atural DDisastersisasters
FloodingFlooding
EarthquakeEarthquake
Climatic irregularityClimatic irregularity
Political ChangesPolitical Changes
Economic changesEconomic changesEconomic changesEconomic changes
Governmental CrisisGovernmental CrisisMilitary CoupMilitary Coup
BiotechnologyBiotechnology
Communication TechnologyCommunication Technology
Information TechnologyInformation Technology
InventionsInventions
Political UnstabilityPolitical Unstability
HyperinflationHyperinflation
DeregulationDeregulation
Intensive CompetitionIntensive Competition
LocalizationLocalization
Demand DownturnDemand Downturn
Supply DownturnSupply Downturn
GlobalizationGlobalization
Economic LiberalizationEconomic Liberalization
Increasing Tax RatesIncreasing Tax Rates
DepressionDepression
Consequences of Economic Crises
Effects of Economic Crisis : Unemployment and Income
Loss ( mass impacts ) overcome the turbulence
with the least effect text
Crises
1929 1929 CrisisCrisis
The Great Depression was a worldwide economic depression originated in the United States and started in most countries in 1929 and continued till 1930s or early 1940s for different countries. It was the largest and most important economic crisis in history, and is used as an example of how far the world's economy can fall.
Crises
1994 1994 CrisisCrisis
The Turkish economy remained an inward-oriented closed economy until the government launched an economic reform and stabilization program on 80s to liberalize the Turkish economy. The stabilization programhas a favorable impact on the Turkish economy, transforming it into an export-oriented, private-sector-driven economy. as the economy flourished, however, increasing political competition forced the government to compromise the stabilization program and pursue fiscally damaging populist economic policies, which resulted in an economic crisis in the beginning of 1994.
Crises
1994 1994 CrisisCrisis
The government responded to the economic crisis by launching an IMF backed economic stabilizationprogram. As the economy recovered and economic stability improved, the government delayed continued implementation of the structural measures of the stabilization program, which resulted in the furtherdeterioration of the Turkish economy until the worsening fiscal situation eventually culminated in another major economic crisis in 2001.
Crises
1997 1997 CrisisCrisis
1997 asian crisis was a period of financial crisis which has started in july 1997 in thailand with the financial collapse of the Thai baht through the decision of the government to float money to devaluate the national currency.
Crises
2001 2001 CrisisCrisis
The 2001 crisis of Turkey preceded by a financial turmoil that burst in the second half of November 2000 just at the midst of an exchange rate based stabilization program. As of the end of December2000, the average interest rates were almost four times higher than their levels at the beginning of Novemberand more than five times higher than the pre-announced year-end depreciation rate of the lira.This unsustainable situation ended on the February 19, 2001, when the prime minister announced that there was a severe political crisis. Three days later, the exchange rate system collapsed and Turkey declared that it was going to implement a floating exchange rate system.
Crises
2008 2008 CrisisCrisis
The global financial crisis of 2008 became in september '08 visible. With the bursting of U.S. Housing bubble the mortgage crisis has occured. Consequent failures of U.S. and European investment banks, insurance firms and mortgage banks it rapidly evolved into a global crisis resulting in a number of European bank failures and declines in various stock indexes, and large reductions in the market value of equities and commodities worldwide. The crisis has led to a liquidity problem and the de-leveraging of financial institutions especially inthe United States and Europe, which further accelerated the liquidity crisis.
Precautions
Macro
Generally macroeconomic unstabilities lie behind economic crises. In that case the priority is to reestablish the macroeconomicstability. Political stability is the way to provide macroeconomic stability. Structural reforms about regulations, fiscal discipline, trust and stability must be legislated by all means. Monetary discipline is important. Government obligations have toBe constitutional just like it is in European Union. ( Maastricht Treaty) Public borrowings rate should have strict discipline thanks to the constitutional obligations. Tax System should be reordered considering principles of equity, justice, stability and efficiency. Diminishing pressure of taxes and reducing untaxed economy would be helpful.
Precautions
Micro
Although macroeconomic precautions are a necessary for the economic stability microeconomic regulations are also required to cure economic crises. Effective applying of Total Quality Management as the modern management mentality,Effective applying of innovative management technics in organizationsGetting high quality, low costs, speed and effective services andrestructuring thanks to the reengineering process
Effects of Crises
2008USA
1929USA 1994
Turkey
1997ASIA
2001Turkey
UnemploymentUnemployment
The biggest effect of crises is
Between 1929-1942
USA Emplyment Rates
1981
1982
1984
1985
1986
1987
1991
1992
1994
1997
2000
2003
2005
2007
7,6
9,7
7,57,2
7
6,2
6,7
7,4
6,1
4,9
4
6
5,1
4,6
0
1
2
3
4
5
6
7
8
9
10
Unemployment
Unemployment Rates of All World
Evolution of unemployment
2003.10 Add Your Text2003.10 Add Your Text2003.10 Add Your Text
ASIA 1997
TURKEY1994
USA2008
Asian Financial CrisisDeveluations and BankingCrises across Asia
2002.10 Add Your Text2002.10 Add Your Text2002.10 Add Your Text
The Great Depression A worlwide economic downturn TURKEY
2001
Global Financial CrisesSpread of the U.S. Subprime Mortgage Crises
USA 1929
Historical Events