A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises

Carmen Reinhart

No 17941, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We document that the global scope and depth of the crisis the began with the collapse of the subprime mortgage market in the summer of 2007 is unprecedented in the post World War II era and, as such, the most relevant comparison benchmark is the Great Depression (or the Great Contraction, as dubbed by Friedman and Schwartz, 1963) of the 1930s. Some of the similarities between these two global episodes are examined but the analysis of the aftermath of severe financial crises is extended to also include the most severe post-WWII crises as well. As to the causes of these great crises, we focus on those factors that are common across time and geography. We discriminate between root causes of the crises, recurring crises symptoms, and common features (such as misguided financial regulation or inadequate supervision) which serve as amplifiers of the boom-bust cycle. There are recurring temporal patterns in the boom-bust cycle and their broad sequencing is analyzed.

JEL-codes: E32 E44 E50 F30 F33 G01 N20 (search for similar items in EconPapers)
Date: 2012-03
New Economics Papers: this item is included in nep-cba, nep-his, nep-ifn and nep-mac
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published as Carmen M. Reinhart, 2011. "A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises," Rivista di Politica Economica, SIPI Spa, issue 4, pages 11-36, October-D.
Published as Carmen M. Reinhart, 2011. "A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises," 'Angelo Costa' Lectures Serie, SIPI Spa, issue Lect. XII.

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Related works:
Working Paper: A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises (2012)
Journal Article: A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises (2011)
Journal Article: A Series of Unfortunate Events: Common Sequencing Patterns in Financial Crises (2011)
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