Causes Of Economic Crisis

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Economic crisis is a crisis can be described as the period of gloomy economic performance. There are many kind of economic crisis, which are financial crisis, currency crisis, so on and so forth. The causes of economic crisis are mostly unexpected, it difficult to specify the exact cause of the crisis, for instance, Uncertainty. Uncertainty is a condition when the participants in a market are uncertain about the issues such as the expected value of stocks and securities, then they will now unlikely trade in the same manner, which they used to. And uncertainty is allegedly as one of the most prolific contributors to economic crises all over the world.
The Economic in Brazil before World War II was characterized by six principal cycles, each centered on one export particular commodity, which are Brazil wood, livestock, sugar, gold, rubber, and coffee. Coffee become the largely determine degree of national prosperity in that time. There was an economic miracle in Brazil (1968–1973); GDP of Brazil was more than 11% annually. However the percentage was settling on 6% (1974-1980), because there was an increasing cost of imported oil.
In 1994, the inflation peaked at 2.700%, was marked by a high level of foreign debt, with implications on the public accounts and a high and rising rate of inflation. Due to the inflation, the finance minister at that time –Fernando Henrique, introduced a new currency, economic towards the inflation, which call The Plano Real Plan. The Plano Real
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