Explaining Financial Crises

This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financial crises ar...

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Main Author: Radke, Marc Peter
Format: Online
Language:English
Published: Peter Lang International Academic Publishers 2021
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Online Access:1003213
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author Radke, Marc Peter
author_browse Radke, Marc Peter
author_facet Radke, Marc Peter
author_sort Radke, Marc Peter
collection Directory of Open Access Books
description This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financial crises are a recurrent phenomenon generally accompanied by excessive boom-bust cycles. Secondly, the frequency of financial crisis cycles is very irregular. Thirdly, most financial crisis cycles are initiated by positive shocks to profit expectations which induce an unsustainable build-up of financial fragility driven by <I>irrational exuberance</I>. The present approach is based on a sophisticated balancesheet structure with many assets, as well as on an expectation formation scheme which combines the rational expectations hypothesis with Keynes’ <I>Beauty Contest Theory</I>.
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language eng
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publishDateRange 2021
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publisher Peter Lang International Academic Publishers
publisherStr Peter Lang International Academic Publishers
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spelling doab-20.500.12854ir-260902025-07-30T09:00:27Z Explaining Financial Crises Radke, Marc Peter Approach Beauty Contest Theory Crises Cyclical Explaining Financial Financial Crises Financial Stability Long-Run Rationality Radke Theorie Währungskrise thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financial crises are a recurrent phenomenon generally accompanied by excessive boom-bust cycles. Secondly, the frequency of financial crisis cycles is very irregular. Thirdly, most financial crisis cycles are initiated by positive shocks to profit expectations which induce an unsustainable build-up of financial fragility driven by <I>irrational exuberance</I>. The present approach is based on a sophisticated balancesheet structure with many assets, as well as on an expectation formation scheme which combines the rational expectations hypothesis with Keynes’ <I>Beauty Contest Theory</I>. 2021-02-10T12:58:18Z 2019-01-10 23:55 2018-12-01 23:55:55 2020-01-16 13:11:37 2020-04-01T11:26:07Z 2018 book 1003213 OCN: 1082991290 http://library.oapen.org/handle/20.500.12657/26832 9783631754375 https://directory.doabooks.org/handle/20.500.12854/26090 eng Hohenheimer volkswirtschaftliche Schriften open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg n/a n/a n/a n/a n/a https://library.oapen.org/bitstream/20.500.12657/26832/1/1003213.pdf https://library.oapen.org/bitstream/20.500.12657/26832/1/1003213.pdf https://library.oapen.org/bitstream/20.500.12657/26832/1/1003213.pdf https://library.oapen.org/bitstream/20.500.12657/26832/1/1003213.pdf https://library.oapen.org/bitstream/20.500.12657/26832/1/1003213.pdf Peter Lang International Academic Publishers 10.3726/b13957 10.3726/b13957 44a712f0-ee17-4c08-a667-46effed595e7 9783631754375 430 Bern open access
spellingShingle Approach
Beauty Contest Theory
Crises
Cyclical
Explaining
Financial
Financial Crises
Financial Stability
Long-Run Rationality
Radke
Theorie
Währungskrise
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
Radke, Marc Peter
Explaining Financial Crises
title Explaining Financial Crises
title_full Explaining Financial Crises
title_fullStr Explaining Financial Crises
title_full_unstemmed Explaining Financial Crises
title_short Explaining Financial Crises
title_sort explaining financial crises
topic Approach
Beauty Contest Theory
Crises
Cyclical
Explaining
Financial
Financial Crises
Financial Stability
Long-Run Rationality
Radke
Theorie
Währungskrise
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
topic_facet Approach
Beauty Contest Theory
Crises
Cyclical
Explaining
Financial
Financial Crises
Financial Stability
Long-Run Rationality
Radke
Theorie
Währungskrise
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics::KCBM Monetary economics
url 1003213
work_keys_str_mv AT radkemarcpeter explainingfinancialcrises