Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/94460
Authors: 
Fahrholz, Christian
Kern, Andreas
Year of Publication: 
2009
Series/Report no.: 
Working Papers on Global Financial Markets 5
Abstract: 
In this article we inquire into the root causes of the present financial crisis by drawing on a Heckscher-Ohlin-Samuelson trade model. At the origin of the current crisis are global imbalances originating from distortions in relative prices. Due to impasses in international production, financial repression in countries that seek to suppress real appreciation has resulted in excessive capital-intensive production and an expansion of financial service sectors in flexible market economies. Moreover, financial globalization has been a vehicle for exporting real appreciation pressures from catching-up economies to mature economies, thus aggravating global imbalances.
Subjects: 
Financial Crisis
Financial Repression
Heckscher-Ohlin-Samuelson Model
JEL: 
E22
E44
F11
F36
F41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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