Author: Aaron Tornell
Publisher: MIT Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 206
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Book Description
Analysis and evidence of how the factors that give rise to boom-bust cycles in fast-growing developing economies also enhance long-run growth. The volatility that has hit many middle-income countries (MICs) after liberalizing their financial markets has prompted critics to call for new policies to stabilize these boom-bust cycles. But, as Aaron Tornell and Frank Westermann point out in this book, over the last two decades most of the developing countries that have experienced lending booms and busts have also exhibited the fastest growth among MICs. Countries with more stable credit growth, by contrast, have exhibited, on average, lower growth rates. Factors that contribute to financial fragility thus appear, paradoxically, to be a source of long-run growth as well. Tornell and Westermann analyze boom-bust cycles in the developing world and discuss how these cycles are generated by credit market imperfections. They explain why the financial liberalization that allows countries to overcome imperfections impeding rapid growth also generates the financial fragility that leads to greater volatility and occasional crises. The conceptual framework they present illustrates this linkage and allows Tornell and Westermann to address normative questions regarding liberalization policies.The authors also characterize key macroeconomic regularities observed across MICs, showing that credit markets play a key role not only in boom-bust episodes but in the strong "credit channel" observed during tranquil times. A theoretical framework is then presented that explains how credit market imperfections can account for these empirical patterns. Finally, Tornell and Westermann provide microeconomic evidence on the credit market imperfections that drive the results of the theoretical framework, finding that asymmetries between tradables and nontradables are key to understanding the patterns in MIC data.
Author: Khafra Om-Ra-Seti
Publisher: Createspace Independent Publishing Platform
ISBN: 9781481042314
Category :
Languages : en
Pages : 626
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Book Description
Was the Meltdown of 2008 the first phase of the Great Depression of the 21st Century? In 2013, this global economic crisis is not over and no one knows the hour or the day when the Final Reckoning will occur! The 2008 Meltdown that culminated in the serial collapse of some of the most powerful corporations in the world, represented only the tip of the iceberg in the emergence of this epic economic bust cycle. What we are now witnessing is the greatest bubble and credit expansion in modern economic history, and when this entire system finally implodes, it will bring into existence some harsh economic and financial realities. The Meltdown of 2008 (and its aftershocks) was the initial bursting of this bubble and the first phase of the Great Depression of the 21st century. As this bust cycle continues to unfold in the wake of the 2008 collapse, the sovereign debt crisis that has a strangle hold on most of the developed world, has evolved into the epicenter of a massive credit and money supply expansion bubble that threatens to derail the entire global economic system. The sovereign debt crisis in Europe is a constant reminder of why this bust cycle may linger on for many years without resolution and a robust recovery. The narrative journey taken in this book helps the reader to better understand the following key issues:* Greece and Spain are microcosms of a much larger looming global catastrophe, and the world can learn valuable lessons by observing the failed austerity policies that are not working in their ongoing depression years. This book also takes a very close look at Japan and its long deflationary bust cycle that spans the period of over two decades. After its extraordinary boom period. Japan has been in a titanic battle to break the grip of a deep deflationary era. There are valuable lessons to be learned in Japan's economic drama. * The analysis presented provides an introduction to Om-Ra-Seti's "Grand Convergence Theory," the confluence of a diversity of economic forces destined to bring about a manifestation of creative destruction and global economic revision. * In historical and narrative form, the reader is presented with a review analysis, power and continuing nature of boom and bust cycles. * The book supports the premise that our civilization has arrived at the end of the "Age of Oil," and that governments, corporations and institutions should be actively engaged in a transition process and period of withdrawal from this depleting and environmentally destructive resource. * This publication offers unique insights and perspectives on the inevitable recovery phase that will begin after the period of global economic purgatory. The year 2012 was the pivotal turning point in this unfolding dramaGovernments and their central bankers are conducting a titanic battle to prevent contagion and collapse into deflation and global depression. We have reached a major turning point in this bust cycle where an accurate assessment and appropriate reforms are critical; inappropriate policies and short-term remedies will only produce greater failure. And there must be a total recognition by global leaders and lawmakers that unrestrained and unbridled free enterprise systems will not work in this current economic bust cycle. The longer our leaders delay in implementing the full measure of economic and depression-era reforms, the more difficult it becomes to stop what is now inevitable: Global Economic Turmoil and Collapse! At some point in this bust cycle, additional stimulus programs, massive money printing, bailouts and corporate welfare will not reverse what we will witness in the second decade of the 21st century. This book brings to light the need for strategic plans for the future in a world that has entered a great technological transition phase.
Author: William Quinn
Publisher: Cambridge University Press
ISBN: 1108369359
Category : Business & Economics
Languages : en
Pages : 297
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Book Description
Why do stock and housing markets sometimes experience amazing booms followed by massive busts and why is this happening more and more frequently? In order to answer these questions, William Quinn and John D. Turner take us on a riveting ride through the history of financial bubbles, visiting, among other places, Paris and London in 1720, Latin America in the 1820s, Melbourne in the 1880s, New York in the 1920s, Tokyo in the 1980s, Silicon Valley in the 1990s and Shanghai in the 2000s. As they do so, they help us understand why bubbles happen, and why some have catastrophic economic, social and political consequences whilst others have actually benefited society. They reveal that bubbles start when investors and speculators react to new technology or political initiatives, showing that our ability to predict future bubbles will ultimately come down to being able to predict these sparks.
Author: Mr.Antonio Spilimbergo
Publisher: International Monetary Fund
ISBN: 1484339746
Category : Business & Economics
Languages : en
Pages : 382
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Book Description
Brazil is at crossroads, emerging slowly from a historic recession that was preceded by a huge economic boom. Reasons for the historic bust following a boom are manifold. Policy mistakes were an important contributory factor, and included the pursuit of countercyclical policies, introduced to deal with the effects of the global financial crisis, beyond the point where they were helpful. More fundamentally, it reflects longstanding structural weaknesses plaguing the economy, that also help explain Brazil’s uninspiring growth performance over the past four decades.
Author: Alex J. Pollock
Publisher: Government Institutes
ISBN: 0844743844
Category : Business & Economics
Languages : en
Pages : 108
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Book Description
While the recent economic crisis was a painful period for many Americans, the panic surrounding the downturn was fueled by an incomplete understanding of economic history. Economic hysteria made for riveting journalism and effective political theater, but the politicians and members of the media who declared that America was in the midst of the greatest financial calamity since the Great Depression were as wrong and misguided as the expansionists of the Roosevelt era. In reality the cyclical nature of market economies is as old as the markets themselves. In a free market system, financial downturns inevitably accompany economic prosperity-but the overall trend is upward progress in living standards and national wealth. While it is helpful to understand what caused the recent crisis, the more important questions to consider are 'What makes the 'boom and bust' cycle so predictable?' and 'What are the ethical responsibilities of the citizens of a free market economy?' In Boom and Bust: Financial Cycles and Human Prosperity, Alex J. Pollock argues that while economic downturns can be frightening and difficult, people living in free market economies enjoy greater health, better access to basic necessities, better education, work less arduous jobs, and have more choices and wider horizons than people at any other point in history. This wonderful reality would not exist in the absence of financial cycles. This book explains why.
Author: Williamson, John
Publisher: Peterson Institute
ISBN: 9780881325966
Category :
Languages : en
Pages : 160
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Book Description
Author: Barbara Hollander
Publisher: Heinemann-Raintree Library
ISBN: 1432939327
Category : Business cycles
Languages : en
Pages : 58
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Book Description
When the world recently went through an economic downturn, it was easy to forget that this had come on the heels of a high-spirited economic expansion, or boom. How did people's fortunes change so dramatically? Booms, Bubbles, and Busts: The Economic Cycle explores how the history of the global financial markets has been shaped by a repeating pattern, or cycle, of both expansions and downturns. Using straightforward language and examples, it explains key economic indicators, from spending to unemployment rates to credit, and explores how and why these indicators change over time. By unraveling the bigger financial picture, you can better understand where in the economic cycle we are today - and where we will likely be heading next. When the recent economic crisis began, many people found themselves wondering: "How did we get here?" The Global Marketplace makes sense of the recent crisis-and the global financial system more generally-by using a clear, engaging style to explore the fundamentals of investing, lending and borrowing, globalization, the economic cycle, and more. Special features include helpful charts and graphs and suggestions for further research, as well as real-life examples that help students to better understand their own role in the global marketplace. Book jacket.
Author: David M. Beckworth
Publisher:
ISBN: 9781598130768
Category : Business & Economics
Languages : en
Pages : 0
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Book Description
Exploring the forceful renewal of the boom-and-bust cycle after several decades of economic stability, this book is a research-based review of the factors that caused the 2008 recession. It offers cutting-edge diagnoses of the recession and prescriptions on how to boost the economy from leading economists. The book concentrates on the Federal Reserve and its leading role in creating the economic boom and recession of the 2000s. Aimed at professional economists and readers well versed in the basic workings of the economy, it includes innovative proposals on how to avoid future boom-and-bust cycles.
Author: Todd A. Knoop
Publisher: Bloomsbury Publishing USA
ISBN: 1440831750
Category : Business & Economics
Languages : en
Pages : 417
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Book Description
Presents the empirical data of business cycles and the theories that economists have developed to explain and prevent them, and considers case studies of recessions and depressions in the United States and internationally. Despite more than two centuries of debate, a definitive explanation of the causes of economic cycles still does not exist. Economists, politicians, and policymakers have argued many well-known theories as to why these peaks and slumps occur, and cyclical recessions and depressions continue in spite of the enormous intellectual reserves working to prevent them. This timely analysis presents a comprehensive overview of global economics, assessing older theories alongside of new ways of thinking to reveal the empirical methods needed to evaluate, forecast, and prevent future crises. Educator and economist Todd Knoop provides explanations of influential macroeconomic theories that have shaped modern economics, such as Keynesian economics, Neoclassical economics, Austrian economics, and New Keynesian economics. In addition, he considers case studies of specific recessions and depressions, beginning with the Great Depression through the East Asian crisis and Great Recession in Japan and culminating with a detailed examination of the European debt crisis and the 2008 global financial crisis. The work concludes with a look at the insights gained from these fiscal events as well as the major questions that still remain unanswered as a result of these crises.
Author: John Williamson
Publisher: Columbia University Press
ISBN: 0881324698
Category : Business & Economics
Languages : en
Pages : 144
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Book Description
International investors poured vast sums of money into East Asian and Latin American countries during the mid-1990s, when the emerging market boom was at its peak. Then Thailand stumbled and panic seized the markets, and boom gave way to bust. Investors suffered large financial losses, while Asian countries suddenly experienced large capital outflows and the macroeconomic pressures these wrought plunged countries that had been growing rapidly ("miraculously") into crisis. Much the same had happened in Latin America when the debt crisis broke in 1982. This book investigates what can be done to make the international capital market a constructive force in promoting development in emerging markets. John Williamson concludes that the problem of cyclicality that has undermined the value of international borrowing cannot be tackled just, or even mainly, from the supply side, but will require actions on the part of both creditors and debtors.
