Financial Crisis And The Imbalance Of The Demands

Financial crisis and the imbalance of the demands

Introduction

The financial crisis is the monetary loss that governs in a country, region or whole world, causes the imbalance of the demands and offers made by the entities, in order to generate profits so as not to reach total bankruptcy. It can be called crisis when a country does not pay its debt. The Gross Domestic Product (GDP) and Gross National Product (PNB), these variables are considered to measure the country’s annual economy. There may be different types in which the crisis occurs.

Developing

The most common is in banking systems, the customers of the institutions become what happened, they act in withdrawing the savings of each of them; for fear that they do not deliver its capital afterwards. There are banking institutions that do not return savings to their customers, which is already spent for the debt debt affected. When a country begins with the crisis, it may affect nearby countries and may even happen worldwide. 

The immediate and mediated causes that can trigger financial crises can be very varied, but in general terms it emphasizes that in the absence of planning and without a very strict regulation of the financial sector it is practically impossible to occur automatically and without disturbances the balance between offer and Demand for means of payment, taking into account that private banking has a constant incentive, as will be seen later, to create more debt and means of payment.

Together with the tendency to constant search for benefit, it implies a permanent impulse of speculative activity. The author says that the main cause of a crisis is due to a bad planning and work regulation of which the country’s financial control corresponds, in search of a benefit, extreme payments and debts are caused. The loss of monetary values ​​is not the only one affected, the social level is affected much more, so the economy decreases.

Interest rates increases, price increase in markets, unemployment, poverty. Many companies tend to occur the ease of dismissal of their employees and high demand for offers of their production. The consequences of the crisis are not easy to control, on the contrary, poverty increases and so it will be established while a good government finds a solution. To avoid a financial crisis, it is important to plan and organize in decision -making.

Arrive an agreement in distributing the investment, as well as the payment of debts and expenses. Consequently so; Savings factors, prevention of unnecessary debts and require an emergency savings fund, if a crisis is caused, it is required that the previous points be taken into account so that the country or entity does not suffer a low rate or resort to Your emergency funds. Avoid unnecessary debts so this causes them to make their payments and decrease its total capital.

conclusion

The economy is the science that studies resources, creation of wealth, production, distribution and consumption of goods and services. The economy is a chain of producers-consumers, if the entities stop producing do not generate income. GDP quantifies the internal production of a country, UNB are companies that are exported and import producing inside and outside other countries. Companies are the main affected to monetary bankruptcy for not establishing a good organization in finance, in the demands and offers of their market.