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 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’

• Tipo de recurso: Book
• Fecha de publicación: 2018
• Institución: Universidad de Bogotá Jorge Tadeo Lozano
• Repositorio: Expeditio: repositorio UTadeo
• Idioma: eng
• OAI Identifier: oai:expeditiorepositorio.utadeo.edu.co:20.500.12010/20821
• Acceso en línea: https://directory.doabooks.org/handle/20.500.12854/26090; http://hdl.handle.net/20.500.12010/20821
• Palabra clave: Economic theory & philosophy; Monetary economics; Política económica; Política monetaria; Desarrollo económico
• License: Abierto (Texto Completo)