Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/182956 
Year of Publication: 
2005
Series/Report no.: 
Hohenheimer volkswirtschaftliche Schriften No. 53
Publisher: 
Peter Lang International Academic Publishers, Berlin
Abstract: 
This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present cyclical approach is consistent with the following three stylized facts. Firstly, systemic financial crises are a recurrent phenomenon generally accompanied by excessive boom-bust cycles. Secondly, the frequency of financial crisis cycles is very irregular. Thirdly, most financial crisis cycles are initiated by positive shocks to profit expectations which induce an unsustainable build-up of financial fragility driven by irrational exuberance. The present approach is based on a sophisticated balancesheet structure with many assets, as well as on an expectation formation scheme which combines the rational expectations hypothesis with Keynes’ Beauty Contest Theory.
Persistent Identifier of the first edition: 
ISBN: 
978-3-631-75437-5
Creative Commons License: 
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Document Type: 
Book
Document Version: 
Digitized Version

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