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Financial Market Crisis: Origin, Short-Term Reaction and Long-Term Adjustment Requirements

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  • Thomas Url

    (WIFO)

Abstract

The current financial crisis cannot be attributed to a single cause, but resulted from the interaction of several simultaneously active forces. The causes can be classified into three categories: macroeconomic causes, regulatory or supervisory shortcomings and causes related to incentives or corporate control. Whereas short-term economic policy measures were geared to minimize the damage, long-term economic policy considerations focus on strengthening stabilising forces in the regulation and supervision of financial intermediaries and on improvements of their incentive systems.

Suggested Citation

  • Thomas Url, 2010. "Financial Market Crisis: Origin, Short-Term Reaction and Long-Term Adjustment Requirements," Austrian Economic Quarterly, WIFO, vol. 15(1), pages 54-77, April.
    • Handle: RePEc:wfo:wquart:y:2010:i:1:p:54-77
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    Cited by:

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    3. Gunther Tichy, 2012. "The Sovereign Debt Crisis: Causes and Consequences," Austrian Economic Quarterly, WIFO, vol. 17(2), pages 95-107, May.
    4. Michael Böheim, 2010. "The Financial Market Crisis and its Consequences for Competition Policy," Austrian Economic Quarterly, WIFO, vol. 15(1), pages 127-132, April.
    5. Karl Aiginger & Hans Pitlik & Margit Schratzenstaller, 2010. "Options for the Consolidation of Public Budgets in Austria," Austrian Economic Quarterly, WIFO, vol. 15(2), pages 184-197, July.

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