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Theoretical Models of Financial Crises

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  • Peter Ignatiev

Abstract

The traditional models of financial crises are considered: Minsky-Kindleberger model, asymmetric information model (Mishkin-Stiglitz) and liquidity crisis model (Diamond-Dybvig). Than the contemporary models of financial crises in emerging markets are analyzed: moral hazard models, financial panic models and balance sheet effects models. The stress is put on the conclusions, that the models are appropriate for methodology for analyses of "small, open economy" with institutional problems like the Bulgarian one. The stress is put on the conclusion that the models are appropriate for a methodology for analyzing "small, open economies" with institutional problems like that of Bulgaria.

Suggested Citation

  • Peter Ignatiev, 2004. "Theoretical Models of Financial Crises," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 110-130.
  • Handle: RePEc:bas:econth:y:2004:i:2:p:110-130
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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