Author

John Stephens

Date of Award

2024

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Khemraj, Tarron

Area of Concentration

Economics with Political Science

Abstract

The economy is a complex, living being constantly going through change on a daily basis, and with these changes come the potential for crisis. These crises can harm individuals and firms alike with damages ranging from a small fiscal loss to a lucrative business going belly up overnight. This study analyzes the theoretical reasons behind some of the leading financial crises impacting our modern economy. It questions how and why these issues occur, and what actions in particular led to FTX and the Silicon Valley Bank’s catastrophic failures. It studies the circumstances behind their collapse applying theoretical answers to the question of why they failed. These case studies are conducted through literary analysis of economic research. Its goal is to further knowledge on the causes of these market monoliths’ collapse. We conclude that unveiling the theoretical causes of economic crises allows us to respond more timely and effectively in future occurrences.

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