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Retour sur la crise et les politiques mises en œuvre : une perspective autrichienne
[Past and Future of the crisis]

Author

Listed:
  • Facchini, François

Abstract

This paper argues in an Austrian-Business Cycle's perspective that all the conditions are met again to have new crisis. The Federal Bank treats, always, a crisis of liquidity excess by low interest rate, i.e. "cheap money policy". When Federal Bank will have to rise its rates, the crisis will come back. This working paper explains also why, on the one hand, the post-keynesian's explication (Minsky) gives only a part of the story and, whyon the other hand, public spending and public debt was not the solution. It gives only a part of the story by if the financial market is fragile it is because central bank increases the moral hasard phenomena. The capitalism by fiat is the cause of market instability. Moral hazard incentives banks to take risks. In this context economic policies implemented to manage the crisis are inadequate. The public expenditure, at the origin of public debt, is not the solution. It is on the contrary a part of the problem. Indeed beyond the optimal size of government the rise of public spending has negative effect on economic growth. It increases public debt and the level of tax and then creates the conditions to have a crisis even deeper.

Suggested Citation

  • Facchini, François, 2014. "Retour sur la crise et les politiques mises en œuvre : une perspective autrichienne
    [Past and Future of the crisis]
    ," MPRA Paper 52984, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:52984
    as

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    File URL: https://mpra.ub.uni-muenchen.de/52984/1/MPRA_paper_52984.pdf
    File Function: original version
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    References listed on IDEAS

    as
    1. Carilli, Anthony M & Dempster, Gregory M, 2001. "Expectations in Austrian Business Cycle Theory: An Application of the Prisoner's Dilemma," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 14(4), pages 319-330, December.
    2. Christophe Blot & Jérôme Creel & Christine Rifflart & Danielle Schweisguth, 2009. "Petit manuel de stratégies de sortie de crise. Comment rebondir pour éviter l'enlisement ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 335-381.
    3. Catherine Mathieu & Henri Sterdyniak, 2009. "La globalisation financière en crise," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 13-73.
    4. Catherine Mathieu & Henri Sterdyniak, 2011. "Finances publiques, sorties de crise..," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 17-60.
    5. François Facchini, 2010. "2007 : une crise systémique ?," Revue d'Économie Financière, Programme National Persée, vol. 97(2), pages 155-183.
    6. Olivier Brossard, 1998. "L'instabilité financière selon Minsky : l'incertitude et la liquidité au fondement du cycle ?," Revue Économique, Programme National Persée, vol. 49(2), pages 407-435.
    7. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    8. François Facchini, 2010. "2007: une crise systémique?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286752, HAL.
    9. François Facchini & Mickaël Melki, 2013. "Efficient government size: France in the 20 th century," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286723, HAL.
    10. André Cartapanis, 2011. "La crise financière et les politiques macroprudentielles. Inflexion réglementaire ou nouveau paradigme ?," Revue économique, Presses de Sciences-Po, vol. 62(3), pages 349-382.
    11. Axel Leijonhufvud, 2009. "Out of the corridor: Keynes and the crisis," Cambridge Journal of Economics, Oxford University Press, vol. 33(4), pages 741-757, July.
    12. Facchini, François, 2004. "La théorie autrichienne des cycles : une théorie de la récurrence des erreurs collectives d’anticipation," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(1), pages 67-94, Mars.
    13. François Facchini, 2004. "La théorie autrichienne des cycles : une théorie de la récurrence des erreurs collectives d’anticipation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286790, HAL.
    14. André Cartapanis, 2009. "Sous l'égide du G20. Vers une nouvelle architecture de la finance mondiale ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 391-408.
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    More about this item

    Keywords

    economic crisis; Austrian-Business Cycle theory; public spending; and public debt;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • H1 - Public Economics - - Structure and Scope of Government
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P17 - Economic Systems - - Capitalist Systems - - - Performance and Prospects

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