Abstract
This article analyzes the most representative international financial crises in Colombia since 1990: the Asian crisis of 1997 and the Sub-Prime crisis of 2008 in the United States. Likewise, the impacts and their effects on national production in some Latin American countries are indicated. Finally, it is shown how financial literacy cushions the negative effects on small and medium-sized enterprises (SMEs), which are of vital importance in the economy for its contribution to GDP and the generation of formal jobs.
Highlights
Economies have periods of growth, expansion and boom, as well as periods of slowdown and crisis, which occur over time as part of what in economics are called business cycles, which depend on internal and external factors, political, social, natural and demographic (Samuelson, 1967)
Analyzing the data of the percentage growth of the Gross Domestic Product (GDP) for the chosen countries, it can be inferred that the United States always had growth, except when the real estate bubble burst in 2008 where the GDP fell 0.1% and 2.5% in 2008 and 2009 respectively, a phenomenon that was not observed in other years of the study period contemplated here
In the face of the crisis in the Asian countries, Brazil and Mexico presented a slowdown in economic growth, but no drop in GDP, contrary to the great impact of the 2008 mortgage crisis, since their production fell by 0.1% and 5.3% respectively, the great impact in Mexico given its proximity to the country where the crisis was born
Summary
Economies have periods of growth, expansion and boom, as well as periods of slowdown and crisis, which occur over time as part of what in economics are called business cycles, which depend on internal and external factors, political, social, natural and demographic (Samuelson, 1967). The functioning of financial markets has been of great importance in explaining the falls in real activity, since in the last 200 years approximately 300 financial crises have occurred, the most critical being that of 1930, known as the “Great Depression” and that of 2008 or “Crisis subprime”, (Machinea, 2009). This author identifies the instability of the financial system as the main cause of financial crises. The mortgage or subprime crisis that broke out in 2008 in the United States
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