Global Financial Crisis: Causes and Lessons - A Neo-Schumpeterian perspective
AbstractThis paper analyses the current financial crisis from a Neo-Schumpeterian perspective. We postulate four linkages that led to the crisis, and that will help us find our way out of the crisis. Therefore, we show that the current evolution is very similar to the Japanese crisis in the beginning of the 1990s. Furthermore, we address the issue why the world was faced with this crisis in such an unprepared way and look at the deficiencies in current economic theories that are responsible for the fact that we did not foresee this development. Besides, we elaborate that the crisis is not a systemic default of the capitalistic system but that it is rather a consequence of its enormous success. Finally, we propose the Neo-Schumpeterian Corridor as a theoretical framework that can help avoid such dramatic evolutions as the current crisis and look at possibilities to overcome this situation.
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Bibliographic InfoPaper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 303.
Date of creation: Feb 2009
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financial crisis; Neo-Schumpeterian Corridor; crisis evolution; governmental role;
Find related papers by JEL classification:
- B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
- G01 - Financial Economics - - General - - - Financial Crises
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-28 (All new papers)
- NEP-FMK-2009-02-28 (Financial Markets)
- NEP-PKE-2009-02-28 (Post Keynesian Economics)
- NEP-RMG-2009-02-28 (Risk Management)
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- Dieter Gramlich & Mikhail V. Oet & Stephen J. Ong, 2013. "Policy in adaptive financial markets—the use of systemic risk early warning tools," Working Paper 1309, Federal Reserve Bank of Cleveland.
- Horst Hanusch & Andreas Pyka & Florian Wackermann, 2009. "A Neo-Schumpeterian Approach towards Public Sector Economics," Discussion Paper Series 306, Universitaet Augsburg, Institute for Economics.
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