Following on from the poster set, “Tracking the Credit Crisis” from the Museum of American Finance in New York, there is another which is well worth a look. I mentioned the book “This Time is Different” on a previous blog which maps the cyclical history of financial crisis from 1810 to 2010 for sixty-six countries representing 90% of world GDP. Click below to go to the site to order a poster or you can view it online by zooming in.
The giant wave in the top section of the graphic depicts the percentage of world GDP by region in crisis during the 200 year period. It includes the four major financial crisis types (sovereign default, banking, currency, and inflation) along with stock market crashes.
The bottom section provides a detailed chart of all sovereign defaults by country, region and year. It shows the repeating nature of sovereign default, a central theme of Reinhart and Rogoff’s book.
Created in partnership with the Princeton University Press, this graphic provides a comprehensive yet accessible view into the historical and current cycles of financial crises.
Here is a graphic from the Wall Street Journal. It shows a strong correlation between the exchange rate and the revenue from selling exports. Remember the following:
Effects of a declining €
• Imports: Should in theory discourage imports. However if goods are inelastic(necessities) the end result is a much higher import bill.
• Exports: Should lead to an increase in the value of exports sold. But it takes time for exporting firms to adjust their marketing and production schedules to take maximum advantage of falling currency values.
• Inflation: Because of dearer imports this may lead to an increase in domestic inflation.
Effects of a rising €
• Imports: Eurozone imports become cheaper. Will improve the B of P provided demand is inelastic. If demand is elastic, cheaper imports will lead to an increase in the volume of imports and a worsening of B of P position.
• Exports: Eurozone exports become dearer. If demand is inelastic export earnings increase and B of P position improves. If demand is elastic their will be a fall in sales and a consequent worsening of the B of P position.
• Inflation: Eurozone imports are cheaper therefore this helps to reduce inflationary pressures.
Back in August last year I did a post on the Museum of American Finance which included a tour of the displays. I also mentioned a poster set which I have found extremely useful. Below is a photograph in my classroom of the 7 posters that form a detailed look at the events that happened from 2007 through to 2010. If interested you can go to their shop online and order a set – no, I am not getting a commission. Click here to go to their website. The colours on the chart represent events in the following areas:
Purple – Investment Companies, Rating Agencies and Bank
Blue – International Developments
Orange – Real Estate Market
Red – Government actions and statements
Green – Dow Jones Industrial Average (DIJA) and economic indicators
The Interactive part of the Financial Times website has a great couple of timelines about China’s trade and foreign reserves. The link to the FT site is as follows: China Interactive.
This grapic from The Economist shows how Brazil has transformed itself from an importer of food to one of the world’s biggest exporters. It is the largest exporter of five internationally traded crops, and number two in soybeans and maize. Furthermore, quite a diverse range of crops considering the climate.
From the Royal Society for the Arts (RSA). They have put together some great animations of lectures on a variety of topics. Below is one on the Crises of Capitalism.
Asia is regaining the economic dominance it enjoyed a millennium ago – but it still has some way to go. Here is a really good video graphic from The Economist.