The Dynamics of a Financial Crisis: The Panic of 1907 and the Subprime Crisis
29 Pages Posted: 16 Jul 2009
Date Written: July 15, 2009
This paper summarizes and compares the events associated with two financial crises separated by 100 years, occurring in 1907 and 2007-2009. The dynamics of both crises have much in common. The commonalities inform and enrich the theories and research on the dynamics of financial crises. And they caution investors and business executives in anticipation of future occurrences.
Keywords: financial crisis, panic, liquidity, bank runs, banking, capital markets, institutions
JEL Classification: B15, D74, D82, E44, E58, G20, G21, N100, N21, N81
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