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An Historical Walk Through Recent Financial Crises

26 Pages Posted: 8 Jul 2011  

Tad Kowalski

MBA Poznan-Atlanta

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Date Written: July 6, 2011

Abstract

This paper analyzes the causes and implications of recent financial crises. Financial crises in general lead to changes in both theory and practice of economics. The paper takes an historical overview. The global consensus of economic theory during the 20th century is discussed. The paper describes the Bretton Woods regime after World War II, details the era of adaptive expectations and motivates the emerging of the rational expectations school of thoughts. Various perspectives on the causes of the financial crisis are incorporated. The paper provides some policy suggestions and remarks on the consequences of ever-changing capital markets.

Keywords: Financial crises, The United States Financial Crisis Inquiry Commission, The 2010 Economic Report of the United States President, Keynsian Theory, Adaptive Expectations, Rational Expectations, Monetary and Fiscal Policies, Business Cycles, Regulations, General Agreement on Tariffs and Trade (GATT)

JEL Classification: B0, E0, E3, E4, E5, E6, F0, F3, F4, G0, G01, H3, H6, K2, O51, P1, R3

Suggested Citation

Kowalski, Tad and Shachmurove, Yochanan, An Historical Walk Through Recent Financial Crises (July 6, 2011). PIER Working Paper No. 11-019. Available at SSRN: https://ssrn.com/abstract=1880090 or http://dx.doi.org/10.2139/ssrn.1880090

Tad Kowalski

MBA Poznan-Atlanta ( email )

Poznan, 60-967
Poland
00488569584 (Phone)
00488569415 (Fax)

HOME PAGE: http://kpgipr.ae.poznan.pl/kowalski/

Yochanan Shachmurove (Contact Author)

City University of New York, CUNY City College of New York - Department of Economics ( email )

160 Convent Avenue
New York, NY 10031
United States
212-650-6202 (Phone)

The University of Pennsylvania - Department of Economics ( email )

160 McNeil Building
3718 Locust Walk
Philadelphia, PA 19104
United States
215-898-1090 (Phone)
215-573-2057 (Fax)

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