 Public and Private Debt Markets in Disequilibrium TheoryFrederick Betz
Chapter Chapter 4 in Stability in International Finance, 2016, pp 65-77 from Springer Abstract: Abstract We have modeled how financial markets trading capital assets can go into price disequilibrium and create financial bubbles. We next modeled how within an international financial grid, investment banks create the financial products of a financial market. And we saw how the unregulated networks in the grid produce and sell financial products of questionable quality and little public good. Next we modeled how the sovereign bonds of Greek nation went into price disequilibrium, triggering a financial crisis in Greece and a subsequent depression lasting over 5 years. But at the same time of the fiscal crisis in Greece, a fiscal crisis occurred in Spain. And after 2010, Spain’s fiscal crisis was solved but Greece’s was not solved. Why the difference between Spain’s solution and Greece’s lack of solution to their fiscal problems? It had to do with the different market sources of the crises, a private-debt market in Spain and a public debt-market in Greece. Keywords: Central Bank; Housing Price; Public Debt; Budget Deficit; Debt Market (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-3-319-26760-9_4 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-26760-9_4 Access Statistics for this chapter More chapters in SpringerBriefs in Economics from Springer |
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