About the Similarities and Common Roots of Two Consecutive Financial Crises

Szász Erzsébet ()
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Szász Erzsébet: Partium Christian University

Ovidius University Annals, Economic Sciences Series, 2018, vol. XVIII, issue 2, 64-69

Abstract: During the process of identifying the causes of the crises emerging in economy we often come across simplified theories, that emphasize only one factor: whether it is the lack of integrity (unethical attitude), committing (accounting) irregularities, principal-agent problems, trust crisis, financial liberalization, the intensification of speculation, imbalance between personal interest and public interest, inappropriate incentive systems, short term orientation or similar issues. As a result of the complexity of our financial world, the occasionally occurring crises cannot be traced back to only one underlying cause; they are rather the indication of a systemic malfunction. This short summery study has the aim of presenting a systemic, multi-factor approach to the root causes of two financial crises emerging in the first decade of the 21st century, the so-called “Enron†phenomenon and the “credit market bubble†, also searching for the common roots of the two crises.

Keywords: financial crisis; short-term orientation; integrity; systemic deficiencies; enronization (search for similar items in EconPapers)
JEL-codes: G01 G10 G12 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xviii:y:2018:i:2:p:64-69

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