A New Explanation of the Dynamics of Financial Crises
Buch, Englisch, 521 Seiten, Format (B × H): 153 mm x 216 mm, Gewicht: 796 g
ISBN: 978-3-031-92288-6
Verlag: Springer Nature Switzerland
This book takes a detailed look at four major financial crises—the twin crises of the South Sea Bubble in Britain and the Mississippi Bubble in France in 1720; the Great Crash of 1929 and the subsequent Great Depression; and the Global Financial Crisis of 2007-9. It traces the evolution and causes of the crises by reference to a theory of support-bargaining and money-bargaining, set out in earlier work, but reintroduced here with specific reference to financial crises. Two early chapters focus on theoretical issues. The work of prominent theorists, including John Law and J. M. Keynes, is evaluated.
A fundamental problem of neoclassical theory is its failure to accommodate time disparities, and consequent credit requirements, in economic transactions. This has necessitated theoretical separation of a ‘real economy’ from financial markets. The separation renders neoclassical economists blind to financial services, and hence to the dynamics of financial crises. In support-bargaining and money-bargaining, the ‘real economy’ and financial services are seamlessly linked.
The book shows how the theory of support-bargaining and money-bargaining provides a clear and consistent explanation of the incidence of financial crises. Since financial crises are not exceptional events, the wider aim of the book is to convince social scientists that, in explaining financial crises, the theory of support-bargaining and money-bargaining provides also a superior explanation of the functioning of economies and societies in quieter times. It will appeal particularly to those many economists who find the prevalent neoclassical model of economic transactions inconsistent with the observable functioning of economies.
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Weitere Infos & Material
Chapter 1:Introduction.- Chapter 2: Support-Bargaining, Money-Bargaining and Financial Support-Bargaining.- Chapter 3: The ‘Real Economy’ and Financial Markets.- Chapter 4: Financial support-bargaining and the South Sea Bubble.- Chapter 5: John Law’s Proposal for a Land Bank.- Chapter 6: Political-Financial support-bargaining: The Mississippi System.- Chapter 7: irrational exuberance and animal spirits.- Chapter 8: Causes, Causation and the Great Depression.- Chapter 9: the gold standard as Frame of Reference and the pre-War Parities.- Chapter 10: Financial Support-Bargaining and the realignment of bargaining counters.- Chapter 11: Sub-Prime Mortgages and the Global Financial Crisis of 2007-9.- Chapter 12: Financial Support-Bargaining and Fannie Mae.- Chapter 13: The Global Crisis: Contagion and Vulnerability.- Chapter 14: Round-up and Restatements.
