What does ED mean in UNCLASSIFIED

An economic disaster is a financial crisis that causes a severe negative effect on the global or a country's economy. It can be caused by large-scale natural disasters, political instability, and wars. The effects of an economic disaster are typically felt by the citizens in terms of unemployment, inflation, poverty and immobility.

Economic disasters can cause serious damage to economies and prolong periods of instability. These disasters have the ability to worsen social issues such as poverty, inequality, and lack of access to resources which can ultimately lead to further disruption within society.

Macroeconomic policy is an attempt by governments to manage the economy through various methods such as fiscal policy (government spending) and monetary policy (interest rate changes). Through using these tools, governments aim to increase growth, reduce unemployment or inflation, while maintaining a healthy level of external balance with other countries. This type of policy can be effective in helping address an economic disaster in the short-term.

During an economic disaster external factors such as international trade, foreign investment flows and debt all play a part in how an economy will handle the crisis. A decrease in demand from other countries could reduce exports which would further weaken certain industries and hit employment levels hard. Similarly foreign investment may become more risky because investors fear losses due to currency fluctuations or political instability resulting in capital flight from a country. Finally high public debt levels accumulated prior to the crisis could make it harder for governments to finance their stimulus efforts needed for recovery.

Natural disasters have often been associated with severe long-term effects on economies both domestically and internationally depending on their location and severity. For example floods or earthquakes that destroy major infrastructure like bridges or ports can severely disrupt production processes within businesses leading to loss of employment while also damaging roads reducing access ways for goods delivery and causing price rises due to shortages or periodical disruptions in supply chains.

Structural adjustment is when government policies are imposed that require certain measures being taken by affected countries so they can qualify for loans from International Financial Institutions like The World Bank or International Monetary Fund (IMF). These measures include changing labour laws making them less protective for workers; limiting imports; privatising state-owned enterprises; decreasing subsidies provided on basic goods etcetera - all this aimed at increasing foreign direct investment into developing countries.

Corruption may make it harder for economies recovering from disaster since this illegal behaviour forces companies into reliance on informal networks instead of legal ones due to bribes being demanded from legitimate firms avoiding them from participating fully within business activities diverting money away from businesses going bankrupt creating more financial hardship across different sectors.

Governments should intervene following major shocks through implementing measures such as providing income support packages; providing credit guarantees; regulating prices; intervening politically via diplomatic relations ; implementing structural reforms aimed at improving fairness between classes & improving regulations