The causes of the 1997 Asian crisis. The start of subprime crisis
This article was started with the theoretical approach of the general economic crisis, the increase/decrease model, by using the process of the money becoming, merchandise money and fiat money. During the time of fiat money there was a break between the material substances from the symbolic value. There was the break when the credit function appeared, because the money and the merchandise cannot circulate simultaneously. The credits have two aspects: a positive one, because it multiplies the possibilities of financing with the same quantity of money; and a negative one, because there is the danger of multiplying of fiat money who will bring increasing value, or much more a symbolic one, of the economy over its inner value, and when trust is lost, there are no money anymore to sustain the growth and the economy will crash. We have presented the Asian Crisis from 1997 and made a debate on the foreign debt of those countries, the high return rates of investments and the bad allocation, the decreasing rhythm of the exports, the lack of commercial law and of course the huge sums of money taken as loans by the South Eastern Asian countries before the crisis, for investments that had profit rates below the capital cost. At the end of paper, we tried to present two figures showing and explaining the mechanism of forming and bursting of the speculative bubble.
Volume (Year): X (2010)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: http://www.univ-ovidius.ro/facultatea-de-stiinte-economice|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:721-726. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jeflea Victor)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.