 THE MONETARY ORIGINS OF THE ECONOMIC AND FINANCIAL CRISISBernard LANDAIS Journal of Applied Economic Sciences, 2010, vol. 5, issue 3(13)/Fall 2010, pages 280-291 Abstract: The global economic situation suddenly worsened in the fall of 2008 and output expansion was negative almost everywhere for 2009. Fluctuation analysis has shown that most of the financial crises and recessions of the past were triggered and worsened by inadequate monetary policies. For our times, the monetary policy played a significant role in the development of the events through its responsibility in the outbreak of the financial crisis. All together, the monetary policy, especially the American one, can be blamed for the remote role (2002–2004) it played in the creation of the speculative bubble which led to a financial crisis. It also has a part of the responsibility through its restrictive direction during the 2004–2006 period; this time, a direction shared by other central banks. Finally, it is more immediately involved through its lack of clear–sightedness and responsiveness in the first months of the recession. Keywords: monetary policy; interest spread; Taylor Rule; financial crisis; recession. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:ush:jaessh:v:5:y:2010:i:3(13)_fall2010:p:115 Access Statistics for this article Journal of Applied Economic Sciences is edited by Laura Stefanescu More articles in Journal of Applied Economic Sciences from Spiru Haret University, Faculty of Financial Management and Accounting Craiova |
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