Introduction

Patrick Spread ()

Chapter Chapter 1 in Financial Support-Bargaining and the Anatomy of Four Major Crises, 2025, pp 1-14 from Springer

Abstract: Abstract Financial support-bargaining constitutes a crucial dynamic of financial crises. It generates the escalation of asset prices characteristic of crises. Use of the neoclassical model as a frame of reference obscures much that is important in financial crises. Time disparities, manipulation of information, the evolutionary nature of economies and the nature of money as a bargaining counter are all invisible in the neoclassical frame of reference. Time disparities between revenues and expenditures are accommodated through provision of credit. A sharp distinction has developed between the ‘real economy’ and financial markets. Financial markets are vulnerable to manipulation of information since the ‘products’ of financial markets are defined by testimonial information. As part of the management of information, theories are created that function as frames of reference, focusing attention on particular aspects of societies for the advance of interests. Interests are situation related, so that economies evolve from situation to situation. Exchange rates between bargaining counters have to reflect relative purchasing powers in order to provide smooth international money-bargaining linkages. The four crises under investigation are the South Sea Bubble of 1720; the failure of the Mississippi System in 1720; the Great Crash of 1929 on the New York Stock Exchange, and the subsequent Great Depression and the ‘sub-prime’ global financial crisis of 2007–9.

Keywords: Neoclassical theory; Time disparities; Manipulation of information; Information interface; Evolution of economies; Frames of reference (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-031-92289-3_1

Ordering information: This item can be ordered from
http://www.springer.com/9783031922893

DOI: 10.1007/978-3-031-92289-3_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().