This is Not a Credit Crisis – It is a Debt Crisis

3 Pages Posted: 8 Oct 2009

See all articles by D.J. Bezemer

D.J. Bezemer

University of Groningen - Faculty of Economics and Business

Abstract

Using an analogy with ancient Babylonia as its leading theme, this viewpoint argues that the credit crisis is the symptom of an underlying problem. Fuelled by government policies, unprecedented debt levels were run up in industrialised countries over the last quarter century. Present policies of financial sector bailouts are not only an unwise use of taxpayers' money; they maintain economic structures opposed to what classical liberals such as J. S. Mill envisaged as a free-market economy.

Suggested Citation

Bezemer, Dirk J., This is Not a Credit Crisis – It is a Debt Crisis. Economic Affairs, Vol. 29, Issue 3, pp. 95-97, September 2009, Available at SSRN: https://ssrn.com/abstract=1484163 or http://dx.doi.org/10.1111/j.1468-0270.2009.01929.x

Dirk J. Bezemer (Contact Author)

University of Groningen - Faculty of Economics and Business ( email )

Postbus 72
9700 AB Groningen
Netherlands

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