EconPapers    
Economics at your fingertips  
 

Chapter 2: The Financial Crisis

Hans-Werner Sinn, John Hassler, Gilles Saint-Paul, Giancarlo Corsetti, Michael Devereux, Tim Jenkinson, Jan-Egbert Sturm and Xavier Vives

EEAG Report on the European Economy, 2009, 59-122

Abstract: The financial turmoil that originated in 2007 and developed into an unprecedented crisis battering financial and real markets is the latest manifestation, on a grand scale and with new attributes, of a welldefined pathology in the process of market liberalization and integration in the post-Bretton Woods era. At the root of the crisis lies a fundamental inconsistency between financial globalisation – the process of liberalization and deregulation driving the impressive growth of world financial markets – and existing public rules and policies at both domestic and international levels. This pathology underlies virtually all the episodes of instability that have affected the developing and the emerging economies since the constraints on capital mobility started to be removed during the 1970s: from the debt crisis in the early 1980s to the financial and currency crisis in South-East Asia in 1997–98. Globalisation of financial markets has systematically and vastly outpaced the development of their governance: governments have lagged behind in reshaping domestic and international institutions as well as in changing and adapting policy behaviour.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.cesifo.org/DocDL/eeag_report_chap2_2009.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:eeagre:v::y:2009:i::p:59-122

Access Statistics for this article

More articles in EEAG Report on the European Economy from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2025-03-31
Handle: RePEc:ces:eeagre:v::y:2009:i::p:59-122