To manage a crisis, governments and central banks typically use a combination of these four tools:
The difference between and deflationary deleveragings. Current market indicators that suggest a bubble is forming. Big Debt Crises
: Central banks create money to buy assets and provide liquidity . To manage a crisis, governments and central banks
A comparison of across different historical eras. To manage a crisis
Modern understanding of these crises is often grounded in three major historical events:
: A classic example of an inflationary debt crisis caused by massive war debts and hyperinflation .