Causes of the Financial Crisis: An Assessment using UK Data
Christopher Martin () and
Costas Milas ()
No 18/09, Department of Economics Working Papers from University of Bath, Department of Economics
We present empirical evidence that the marked rise in liquidity in 2001-2007 was due to large and persistent current account deficits and loose monetary policy. If this increase in liquidity was a pre-condition for the financial crisis that began in July 2007, we can conclude that loose monetary and the deterioration in current account balances were causes of the financial crisis.
Keywords: liquidity; monetary policy; financial crisis; global imbalances (search for similar items in EconPapers)
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Working Paper: Causes of the Financial Crisis: an Assessment Using UK Data (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eid:wpaper:15961
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