Real economy causes of the Great Deprivation of early 21st Century
AbstractThe American economy has undergone a dramatic structural change in the first decade of the 21st Century. The real-economy causes of this transformation, and their expression via the real estate market and its financial derivatives’ market, and their final manifestation in world financial markets, is explained using traditional economic theory. A three-sector Walrasian general equilibrium model, and a non-Walrasian temporary equilibrium model with fixed prices and quantity constraints, are both utilized to explain the real-economy causes of the observed stylized facts. Some remedies that will likely work, and ones that will not, are also identified. (95 words)
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 11369.
Date of creation: 04 Nov 2008
Date of revision:
financial crisis; credit crunch; mortgage backed securities; fiscal policy; monetary policy; the U.S. economy; outsourcing; international capital mobility;
Find related papers by JEL classification:
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D3 - Microeconomics - - Distribution
- F2 - International Economics - - International Factor Movements and International Business
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- F1 - International Economics - - Trade
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-11 (All new papers)
- NEP-DEV-2008-11-11 (Development)
- NEP-MAC-2008-11-11 (Macroeconomics)
- NEP-URE-2008-11-11 (Urban & Real Estate Economics)
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