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dc.contributor.authorHoffmann, Andreasen_US
dc.contributor.authorUrbansky, Björnen_US
dc.date.accessioned2012-06-18en_US
dc.date.accessioned2012-06-28T10:35:16Z-
dc.date.available2012-06-28T10:35:16Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/59512-
dc.description.abstractThe paper describes boom-and-bust cycles within Hayek's framework of order and aims to provide an understanding of recurring crises in recent financial history. We argue that a boom-and-bust cycle is initiated by a displacement that lowers the degree of (ex-post) plan coherence (or order) in an economy. Such displacements can be endogenous (e.g. innovations) or exogenous (e.g. policy alteration). A cycle can be triggered if the displacement signals high short-run profit opportunities but agents lack an understanding of the long-run impact of the displacement and cannot form coherent expectations. The application of the framework aims at making sense of recurring financial crises since the break-down of the Bretton Woods System. First, we argue that the newly emerging international financial architecture has made the financial system more elastic. Second, we show how large exogenous displacements such as capital account liberalization inititated boom-and-bust cycles in developing countries. And third, we argue that the competitive market system themselves brought about many innovations that endogenously amplified the latest US boom-and-bust cycle and increased the crisis potential.en_US
dc.language.isoengen_US
dc.publisherUniv., Wirtschaftswissenschaftliche Fakultät Leipzigen_US
dc.relation.ispartofseriesWorking Paper, Universität Leipzig, Wirtschaftswissenschaftliche Fakultät 108en_US
dc.subject.jelE32en_US
dc.subject.jelB5en_US
dc.subject.ddc330en_US
dc.subject.keywordHayeken_US
dc.subject.keywordorderen_US
dc.subject.keyworddisplacementen_US
dc.subject.keywordfinancial crisesen_US
dc.subject.stwFinanzmarktkriseen_US
dc.subject.stwKonjunkturen_US
dc.subject.stwWirtschaftsordnungen_US
dc.subject.stwMarktmechanismusen_US
dc.subject.stwEvolutionsökonomiken_US
dc.subject.stwTheorieen_US
dc.titleOrder, displacements and recurring financial crisesen_US
dc.typeWorking Paperen_US
dc.identifier.ppn717858707en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:leiwps:108-
Appears in Collections:Working Papers, Universität Leipzig

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