Is denial of the possibility of financial asset market failure responsible for an economic holocaust? (SoMWP0902)

Research output: Working paper

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Abstract

Throughout the world every economic and socio-economic indicator has deteriorated. The so-called ‘real economy’ has been deeply contaminated by the most significant global financial crisis for seven decades. The ultimate extent and duration of this rampant degeneration and its longer-term political effects are unpredictable. What caused the crisis? This paper examines a range of suppositions made in theories which deny the possibility of financial asset market failure and identifies ways in which they contributed to the circumstances and actions which created the current crisis.
Original languageEnglish
Place of PublicationEgham, TW20 0EX
PublisherThe School of Management, Royal Holloway University of London
DOIs
Publication statusPublished - Feb 2009

Publication series

NameSchool of Management Working Papers
PublisherThe School of Management, Royal Holloway University of London
No.SoMWP-0902

Keywords

  • credit crisis
  • incentives
  • irrationalities
  • leverage
  • light-touch
  • market failure denial
  • regulation
  • shareholder value
  • short-termism
  • speculation
  • toxic assets

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