Explaining financial crises a cyclical approach
This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financi...
| Other Authors: | |
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| Format: | Electronic |
| Language: | Inglés |
| Published: |
Bern
Peter Lang International Academic Publishing Group
2018
Frankfurt am Main, Germany : 2005. |
| Edition: | 1st ed |
| Series: | Hohenheimer volkswirtschaftliche Schriften ;
Band 53. |
| Subjects: | |
| See on Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009427786906719 |
| Summary: | This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financial crises are a recurrent phenomenon generally accompanied by excessive boom-bust cycles. Secondly, the frequency of financial crisis cycles is very irregular. Thirdly, most financial crisis cycles are initiated by positive shocks to profit expectations which induce an unsustainable build-up of financial fragility driven by <I>irrational exuberance</I>. The present approach is based on a sophisticated balancesheet structure with many assets, as well as on an expectation formation scheme which combines the rational expectations hypothesis with Keynes’ <I>Beauty Contest Theory</I>. |
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| Physical Description: | 1 online resource (430) |
| ISBN: | 9783631754375 |
