Global Financial Crisis: Causes & Consequences

Crisis Transmission: Global Financial Crisis

The aim of this paper is to explore, empirically, the channels of crisis transmission with regard to the Global financial crisis. EMP-based crisis proxy is used for eight countries, which include Argentina, Brazil, Canada, Indonesia, Japan, Korea, Mexico and Russia. The period considered for estimation was Q1 2001 Q2 2010. Based on the Vector AutoRegression (VAR) and Ordinary Least Squares (OLS...

Forthcoming in THE CONSEQUENCES OF THE GLOBAL FINANCIAL CRISIS, eds

All European member-states have been hit by the economic crisis, but some have been harder hit than others. The ‘liberal market economies’ (LMEs) of Anglophone countries, consisting of Britain and Ireland as well as the United States, long the darlings of the markets and the pundits, have this time been hardest hit, with their credit-fueled finance-driven model of growth having been at the hear...

Global Imbalances and the Financial Crisis: Products of Common Causes

One of the main global economic concerns before the financial crisis was the presence of large “global imbalances,” which refer to the massive and persistent current account deficits experienced by the United States and financed by the periphery . This concern was intellectually grounded on the devastating crises often experienced by emerging market economies that run chronic current account de...

The Causes of Japan’s Financial Crisis

The Banking Crisis: Causes, Consequences and Remedies

The paradigm that financial markets are efficient has provided the intellectual backbone for the deregulation of the banking sector since the 1980s, allowing universal banks to be fully involved in financial markets, and investment banks to become involved in traditional banking. There is now overwhelming evidence that financial markets are not efficient. Bubbles and crashes are an endemic feat...