WHat is

economic Collapse?

Economic collapse refers to a period of

national or regional economic breakdown where
the economy is in distress for a long period,
which can range from a few years to several
decades. During periods of economic distress,
a country is characterized by social chaos,
social unrest or bankruptcies etc

CAUSES OF CRISES

2. Stagflation
1.Hyperinflation
Stagflation refers to 1. Hyperinflation
a situation in which 2.Stagflation Hyperinflation occurs when
the economy is the government allows
growing at a slow inflationary pressure to build
up in the economy by printing
rate while 3. Stock market excessive money, which leads
simultaneously
crash to a gradual rise in the
experiencing high prices of commodities and
rates of inflation. A stock market crash occurs when services. Hyperinflation is
there is a loss of investor used to describe situations
confidence in the market, and where the prices of all goods
and services rise
there is a dramatic decline in
uncontrollably over a defined
stock prices across different stocks
time period.
trading in the stock market.

Case study of Philippine

Economic Problems
1. Low real wages and
little job opportunities

2.Huge foreign and domestic

debt

3.Bureaucracy and massive graft

and corruption in government.

Great disparity in the distribution of

wealth and material goods

Slow economic growth and rapidly

rising population

Govt. solutions to the

economic problems
1.Opening the Philippine markets to world commerce,
import liberalization policy, lifting of protectionist
policies, and adherence to the idea of globalization.
2.More foreign debts and foreign aids from the World
Bank and the IMF to solve budget deficits.
3.Privatization and commercialization of government-
owned or controlled corporations.
4.Joining in treaties and agreements with world trade
bodies whose goals and objectives are advantageous to
the more technological advanced economy.