IDEAS home Printed from https://ideas.repec.org/p/epa/cepawp/2009-10.html
   My bibliography  Save this paper

WP 2009-10 After Hubris, Smoke and Mirrors, The Downward Spiral: Financial and real markets pull each other down; how can policy reverse this?

Author

Abstract

The causes of the present crisis are largely to be found in the unregulated development of new financial products and in the over-expansion of the financial sector, in particular the shadow banking sector, which emerged precisely to avoid regulation. These changes led to lower risk perception, overvaluing of assets, overleveraging, and then to higher actual risk and instability. But the development of this instability, bringing on a crash, has also led to a collapse of the real side of the economy. The authors discuss the new financial arrangements and new types of regulation that are needed to prevent this happening again

Suggested Citation

  • Edward Nell, Willi Semmler, 2009. "WP 2009-10 After Hubris, Smoke and Mirrors, The Downward Spiral: Financial and real markets pull each other down; how can policy reverse this?," SCEPA working paper series. 2009-10, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    • Handle: RePEc:epa:cepawp:2009-10
    as

    Download full text from publisher

    File URL: https://www.economicpolicyresearch.org/scepa/publications/workingpapers/2009/SCEPA_Working_Paper_2009-10.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    financial crisis; real estate bubble; recession;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:epa:cepawp:2009-10. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bridget Fisher (email available below). General contact details of provider: https://edirc.repec.org/data/cenewus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.