Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147127
Authors: 
Białek, Natalia
Year of Publication: 
2015
Citation: 
[Journal:] e-Finanse: Financial Internet Quarterly [ISSN:] 1734-039X [Volume:] 11 [Year:] 2015 [Issue:] 2 [Pages:] 47-63
Abstract: 
This paper argues that the loose monetary policy of two of the world's most important financial institutions-the US Federal Reserve Board and the European Central Bank-were ultimately responsible for the outburst of global financial crisis of 2008 - 09. Unusually low interest rates in 2001 - 05 compelled investors to engage in high risk endeavors. It also encouraged some governments to finance excessive domestic consumption with foreign loans. Emerging financial bubbles burst first in mortgage markets in the US and subsequently spread to other countries. The paper also reviews other causes of the crisis as discussed in literature. Some of them relate directly to weaknesses inherent in the institutional design of the European Monetary Union (EMU) while others are unique to members of the EMU. It is rather striking that recommended remedies tend not to take into account the policies of the European Central Bank.
Subjects: 
global financial crisis
monetary policy
monetary union
eurozone
European Central Bank
Stability and Growth Pact
euro crisis
fiscal union
JEL: 
E52
E58
E60
E62
F30
G01
Persistent Identifier of the first edition: 
Document Type: 
Article

Files in This Item:
File
Size





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