This offers an extensive overview of financial crises, particularly focusing on four distinct waves of global financial instability since the 1970s. It explains how these crises are frequently preceded by credit bubbles, where debt escalates unsustainably, often tied to real estate or stock market surges. The document also examines the historical context of financial manias and panics, emphasizing the role of monetary policy, international contagion, and the contentious debate surrounding government intervention and the concept of an international "lender of last resort." Ultimately, it suggests a systematic relationship among these crisis waves, driven by rapid changes in the global economic environment and the pro-cyclical nature of credit supply.
