Causes of the Financial Crisis: an Assessment Using UK Data
Christopher Martin () and
Costas Milas ()
Working Paper series from Rimini Centre for Economic Analysis
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: financial crisis; liquidity; monetary policy; global imbalances (search for similar items in EconPapers)
JEL-codes: G01 E44 E52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Causes of the Financial Crisis: An Assessment using UK Data (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:10_09
Access Statistics for this paper
More papers in Working Paper series from Rimini Centre for Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Marco Savioli ().