The Financial Crisis in Retrospect
A Case of Misunderstood Interdependence
Bibliographic Data
| ID | 6251731 |
|---|---|
| Authors | Juliusz Jabłecki (0000-0003-0045-7564, corresponding author) |
| Year | 2016 |
| Volume | 28 |
| Issue | 3-4 |
| Pages | 287-334 |
| Publication date | 2016-10-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Critical Review (JOURNAL) |
| Journal identifiers | ISSN: 0891-3811 • E-ISSN: 1933-8007 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/08913811.2016.1254320 |
| OpenAlex | W2562356534 |
| Language | EN |
| References cited | 30 |
The inherent complexity of modern financial systems, and their basis in human behavior, make it hard to establish unequivocally the "who, what, where, when, and why" of the global financial crisis. However, after almost a decade, we know enough to discard much of what has, in the meantime, become folk wisdom about the causes of the debacle, including Wall Street bonus culture, bankers' greed, the moral hazard of "too big to fail," government intervention ("too much government") and deregulation ("not enough government"). While each of these factors may have played some role, the crisis can be much more accurately described as one of ignorance than malevolence. The common thread tying the emergence of the bubble to the disastrous consequences of its bursting is the misunderstanding of correlation and causation links in three key domains: economic policy, financial modeling, and the regulatory framework. These misunderstandings helped fuel the housing bubble and introduced fragility into the system, making it vulnerable to the bubble's subsequent, unavoidable burst
Causation · Deregulation · Economic interventionism · Economics · Financial crisis · Government (linguistics · Ignorance · Incentive · Law and economics · Macroeconomics · Market economy · Moral hazard · Political economy · Political science · Politics · Too big to fail · Banking stability, regulation, efficiency · Economic, financial, and policy analysis · Global Financial Crisis and Policies · Law · Finance
Manias, Panics and Crashes
The Science of Monetary Policy
Causes of the Financial Crisis
An Epistemology of the Financial Crisis
A Crisis of Politics, Not Economics
The Regulated Meltdown of 2008
Economic Policy and the Financial Crisis
The Anatomy of a Murder
Fragile by design
Structural causes of the global financial crisis
| Highly cited | No |
|---|