Financial Whirlpools

Karen L. Higgins
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Karen L. Higgins: Claremont Graduate University, Claremont, CA, USA

in Elsevier Monographs from Elsevier, currently edited by Candice Janco

Abstract: How do economists reconcile their expertise with their failures to predict and manage the 2008 financial crisis? This book goes a long way toward an answer by using systems theory to reveal the complex interdependence of factors and forces behind the crisis. In her fully integrated view of the economy, how it works, and how the economic crisis burst, Karen Higgins combines human psychology, cultural values, and belief formation with descriptions of the ways banks and markets succeed and fail. In each chapter she introduces themes from financial crisis literature and brings a systems-theory treatment of them. Her methodology and visual presentations both develop the tools of systems theory and apply these tools to the financial crisis. Not just another volume about the crisis, this book challenges the status quo through its unique multidisciplinary approach. Presents a broad global view of international economic health and international corporate health Describes how policies, regulations, and trends dating to the 1950s influenced the crisis Assumes readers possess a general familiarity of economics and finance

Keywords: ARM (adjustable rate mortgage); Adjustable rate mortgages; American culture; Balancing and reinforcing feedback loops; Bankruptcy; Behavior; Behavior-over-time charts; Behavioral economics; Beliefs; CDO; CDS; Causal loop diagrams; Collateralized debt obligations; Consequences; Consumer behavior; Consumer debt; Loan defaults; Consumerism; Corporate cultures; Credit default swaps; Culture; Debt; Deceit; Delinquencies; Demand; Derivatives; Disreputable lending; Economic environment; Economic policy; Expectations; Expectations reinforcing feed-forward loop; Foreclosure; Future implications; Global economic crisis; Global economic system; Greed; Hedonic treadmill; Housing bubble; Housing prices; Human behavior; Human nature; Incentives; Income; Inflation; Lags; Levers; Limits; Loan defaults; MBS; Material desires; Material gain; Monetary policy; Moral grounding; Mortgage fraud; Mortgage-backed securities; Neuroeconomics; Norms; Policies; Rating agencies; Recession; Responsibility; Risk; Search for meaning; Securities; Securitization; Self-interest; Shady strategy; Social interest; Subprime loans; Supply and demand; Systems thinking; Unemployment; Unethical behavior; Values; World GDP (search for similar items in EconPapers)
Date: 2013 Originally published 2013-04-25.
Edition: 1
ISBN: 978-0-12-405905-4
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