The financial crisis of 2008 was caused (mainly) by government interventions

Luboš Smrčka

Ekonomika a Management, 2009, vol. 2009, issue 1

Abstract: The author analyses individual features of the current global economic development, coming up with a hypothesis that several independent factors, which would have occurred by themselves, too, combined at a given time and the concurrence thereof created a difficult and hardly predictable situation. Together with the commonly discussed causes of the economic crisis, he introduces a thesis that an important role was played by long-term and continuous attempts of governments in developed economies at outpacing the development of living standards in the respective countries in terms of the accessibility of own homes, at outpacing the trends predetermined by the abilities of the national economies. He comes up with the idea that particularly the massive support of housing in the United States led to creating an environment that ceased to behave market-wise and was not able to indicate correct and corresponding prices any longer, mainly because it artificially provoked demand for own homes. Moreover, homes in standards much higher than the mortgage lenders could afford economically.

Keywords: Ekonomická krize; Economic crisis; hypotéky; mortgages; vládní podpora bydlení; government housing subsidies (search for similar items in EconPapers)
JEL-codes: G30 (search for similar items in EconPapers)
Date: 2009
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