Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/107759
Authors: 
Dodig, Nina
Herr, Hansjörg
Year of Publication: 
2015
Series/Report no.: 
Working Paper, Institute for International Political Economy Berlin 48/2015
Abstract: 
This paper presents an overview of different models which explain financial crises, with the aim of understanding economic developments during and possibly after the Great Recession. In the first part approaches based on efficient markets and rational expectations hypotheses are analyzed, which however do not give any explanation for the occurrence of financial crises and thus cannot suggest any remedies for the present situation. A broad range of theoretical approaches analyzing financial crises from a medium term perspective is then discussed. Within this group we focused on the insights of Marx, Schumpeter, Wicksell, Hayek, Fisher, Keynes, Minsky, and Kindleberger. Subsequently the contributions of the Regulation School, the approach of Social Structures of Accumulation and Post-Keynesian approach, which focus on long-term developments and regime shifts in capitalist development, are presented. International approaches to finance and financial crises are integrated into the analyses. We address the issue of relevance of all these theories for the present crisis and draw some policy implications. The paper has the aim to find out to which extent the different approaches are able to explain the Great Recession, what visions they develop about future development of capitalism and to which extent these different approaches can be synthesized.
Subjects: 
theories of crisis
Marxian
Institutional
Keynesian
capitalism
finance
financial crisis
JEL: 
B14
B15
B24
B25
E11
E12
E13
E32
Document Type: 
Working Paper

Files in This Item:
File
Size
810.31 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.