The Causes of the Global Financial Crisis

Ali M. El-Agraa

A chapter in The Impact of the Global Financial Crisis on Emerging Financial Markets, 2011, pp 91-126 from Emerald Group Publishing Limited

Abstract: The world has been gripped by the severest global financial (and economic) crisis since the Great Depression of the 1930s. How did it come about, what is being done to alleviate its consequences and, vitally, what measures should be undertaken to ensure against its recurrence are therefore questions that must be satisfactorily addressed. Preventing ‘financial crises’ from ever happening again is of course completely out of the question, they being inherent to the economic system as we understand it; rather that of those of the ‘severest’ kind. Fortunately, a vast literature has been accumulating on these issues, so the intention here is not to add to it and reinforce the perception that economists will offer more opinions on a single issue than the total membership of any assembled group thereof for the purpose. Hence, this is confined to a consideration of the most convincing explanations. Owing to space limitations, I shall not examine the recommendations for future action in all the mentioned areas but will do so for what is being offered to cater for the capital adequacy and pro-cyclicality since they are of the essence and involve many players.

Keywords: Financial and economic crises; capital adequacy and capital pro-cyclicality; European Central Bank; UK Financial Authority; Turner Review; de Larosière et al. Report; leverage; asset-backed securities; collateralised debt obligations; special purpose vehicles; structured investment vehicles; sub-prime mortgages; securitisation; credit rating agencies; value-at-risk (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 3759(2011)0000093005
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:csefzz:s1569-3759(2011)0000093005

DOI: 10.1108/S1569-3759(2011)0000093005

Access Statistics for this chapter

More chapters in Contemporary Studies in Economic and Financial Analysis from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().