Psychological Aspects of the Current Economic Crisis
This article considers the formation of new "market psychology" in the situation of pyramid globalization and liberalization as a general precondition of the current crisis. The basic elements of this psychology include a shift of U.S. households from savings behavior to credit-dependent consumption, the transition of large American corporations under the control of financial "hawks," and the creation of a system of global capital inflow to the United States. On this basis, a quasi-Keynesian model is put forward of unstable equilibrium at the stage of growth generated by external credits. The article concludes that the psychological imbalance of ruling U.S. elites, on the one hand, and Western Europe and Japan, on the other interferes with maintaining global economic stability.
Volume (Year): 52 (2009)
Issue (Month): 5 (September)
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