Abstract

https://ssrn.com/abstract=2681389
 


 



The Comparative Political Economy of a Crisis


Peter J. Boettke


George Mason University - Department of Economics

Liya Palagashvili


State University of New York (SUNY) - Purchase College, Department of Economics

October 27, 2015

GMU Working Paper in Economics No. 15-53

Abstract:     
During times of economic crises, the public policy response is to abandon basic economic thinking and engage in ‘emergency economic’ policies. We explore how the current financial crisis was in part caused by previous emergency economic measures. We then investigate the theoretical limitations of emergency economic responses. We argue that these responses fail to take into consideration the practical conditions of politics, and thereby making them unsuitable to remedy the problems of a crisis. Lastly, we provide a preliminary analysis of the consequences resulting from emergency economic policies initiated in response to the 2008 financial crisis.

Number of Pages in PDF File: 22

Keywords: Financial crisis, political economy, institutional economics, fiscal policy, monetary policy, Keynesian economic policies

JEL Classification: E30, H60, H30


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Date posted: October 28, 2015 ; Last revised: November 19, 2015

Suggested Citation

Boettke, Peter J. and Palagashvili, Liya, The Comparative Political Economy of a Crisis (October 27, 2015). GMU Working Paper in Economics No. 15-53. Available at SSRN: https://ssrn.com/abstract=2681389 or http://dx.doi.org/10.2139/ssrn.2681389

Contact Information

Peter J. Boettke
George Mason University - Department of Economics ( email )
4400 University Drive
Fairfax, VA 22030
United States
703-993-1149 (Phone)
703-993-1133 (Fax)
Liya Palagashvili (Contact Author)
State University of New York (SUNY) - Purchase College, Department of Economics ( email )
735 Anderson Hill Road
Purchase, NY 10577
United States
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