Sentence: Price instability and financial crises have been a reality for many...

[P_a_v]

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Price instability and financial crises have been a reality for many centuries and their history is very interesting.

In the Netherlands, tulips modified by mosaic virus became extraordinarily popular. A host of people invested a lot of money in the tulips and when the interest in the flowers, and subsequently their price, decreased dramatically in 1673, the people lost their money.

When prices are determined by market and supplies of some goods are constant in the short term, the demand rises and, logically, its price goes up. There is only a few things in the world that cannot be produced as the market determines, so generally when the demand rises, the production rises also and sometimes such a relation creates a bubble.

In cases of paralyzed or weak markets, it is banks that are in trouble immediately, because they are dependent on credit repayments.

[Mister Micawber]

Price instability and financial crises have been a reality for many centuries, and their history is very interesting.
In the Netherlands, tulips modified by (a mosaic virus / mosaic viruses) became extraordinarily popular. The flowers attracted a host of investors, but when public interest in the flowers, and subsequently their prices, dropped dramatically in 1673, vast sums of money were lost.
When a product's price is determined by the market and its supply is constant in the short term, the demand rises and its price goes up. There are very few goods or materials that cannot be produced as the market determines, so when demand rises, production generally rises also, and sometimes this relationship creates a bubble.
In paralyzed or weak markets, it is banks that first fall into difficulty , because they are dependent on debt repayments.
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Native English teacher at Mister Micawber's

[P_a_v]

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