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- 1 FRANCONOMICS.COM
- 2 Definition
- 3 Disambiguation page
- 4 Useful references
- 5 fraud section
- 6 Systemic crises or crises at individual institutions?
- 7 Which literature?
- 8 op. cit.
- 9 efficient price material
- 10 NPOV and Uncited sections
- 11 Neutrality question
- 12 Pezzuto references (COI?)
- 13 Copyright problem removed
- 14 Dr. Laeven's comment on this article
- 15 Dr. Cecchetti's comment on this article
Hi All, I am Sam Mishra, the podcaster on http://www.Franconomics.com , a website devoted to unearthing the corruption / nexus between Wall-Street Plutocrats and Washington Bureaucrats. I also announced recently my second book titled as follows: The 20 Trillion Dollar Value Drain: How Goldman and Other Banks Looted America and Why They will do it Again. Please follow the above links and listen to my past weekly podcasts. These contain the seeds for the aforementioned book. I also think franconomics.com merits a link to this web page. Please advise, Sam (talk) 01:26, 13 September 2009 (UTC)
- "is a situation when money demand quickly rises relative to money supply." I believe its more accurate to say its when the demand for money rises sharply relative to the liquidy avaliable. Tradingbr 10:31, 20 March 2007 (UTC) —
'Financial crisis' is a loosely-defined term that refers to a variety of phenomena which (depending on your theoretical viewpoint) may or may not be closely related. Therefore I suggest that it would be appropriate to treat this primarily as a disambiguation page with links to more specific types of economic conditions that are typically classed as financial crises.
Economic conditions that are usually or sometimes classified as financial crises include:
- Bank run
- Credit crunch
- Stock market crash
- Bursting of a financial bubble
- Currency crisis (which should also link to devaluation)
- Sudden stop (economics) or Current account reversal
- Sovereign default
- Recession and depression
Besides redirecting to the 'Main' page on each of these topics, we could provide links to the pages describing prominent historical examples.
We could also link some factors believed to be involved in (some) financial crises, and/or a list of theories of financial crises:
- Financial contagion
- Systemic risk
- Leverage (finance)
- Asset-liability mismatch
- Sometimes fraud plays a role too, e.g. Ponzi scheme.
- Reflexivity / Strategic complementarity
- Coordination game / Self-fulfilling prophecy
- Debt deflation
- Wealth effect
- Financial accelerator
- Flight to quality
- Flight to liquidity
Mostly about banking crises:
- Milton Friedman and Anna Schwartz (1971), A Monetary History of the United States.
- Ben S. Bernanke (2000), Essays on the Great Depression.
- Robert F. Bruner (2007), The Panic of 1907. Lessons Learned from the Market's Perfect Storm.
- Franklin Allen and Douglas Gale (2007), Understanding Financial Crises.
- Jean-Charles Rochet (2008), Why Are There So Many Banking Crises? The Politics and Policy of Bank Regulation.
- R. Glenn Hubbard, ed., (1991) Financial Markets and Financial Crises.
- Douglas Diamond and Philip Dybvig (1983), 'Bank runs, deposit insurance, and liquidity'. Journal of Political Economy 91 (3).
- Luc Laeven and Fabian Valencia (2008), 'Systemic banking crises: a new database'. International Monetary Fund Working Paper 08/224.
Mostly about bubbles and crashes:
- Charles P. Kindleberger (2005), Manias, Panics, and Crashes: A History of Financial Crises.
- 'Of manias, panics, and crashes', obituary of Charles Kindleberger in The Economist, July 17, 2003.
- Markus Brunnermeier (2008), 'Bubbles', New Palgrave Dictionary of Economics, 2nd ed.
- John K. Galbraith (1997), The Great Crash 1929.
- Hyman P. Minsky (1986, 2008), Stabilizing an Unstable Economy.
- Robert J. Shiller (1999, 2006), Irrational Exuberance.
- Robert J. Shiller (2008), The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do About It.
- Markus K. Brunnermeier (2001), Asset Pricing under Asymmetric Information: Bubbles, Crashes, Technical Analysis, and Herding, Oxford University Press. ISBN 0198296983.
Mostly about currency crises:
- Paul Krugman (1995), Currencies and Crises.
- Paul Krugman, ed., (2000), Currency Crises.
- Craig Burnside, Martin Eichenbaum, and Sergio Rebelo (2008), 'Currency crisis models', New Palgrave Dictionary of Economics, 2nd ed.
- Maurice Obstfeld (1996), 'Models of currency crises with self-fulfilling features'. European Economic Review 40.
- Stephen Morris and Hyun Song Shin (1998), 'Unique equilibrium in a model of self-fulfilling currency attacks'. American Economic Review 88 (3).
Mostly about sudden stops:
- Barry Eichengreen (2004), Capital Flows and Crises.
- Charles Goodhart and P. Delargy (1998), 'Financial crises: plus ça change, plus c'est la même chose'. International Finance 1 (2), pp. 261-87.
Mostly about sovereign default:
- Jean Tirole (2002), Financial Crises, Liquidity, and the International Monetary System.
- Guillermo Calvo (2005), Emerging Capital Markets in Turmoil: Bad Luck or Bad Policy?
- Barry Eichengreen (2002), Financial Crises: And What to Do about Them.
- Barry Eichengreen and Ricardo Hausmann, eds., (2005), Other People's Money: Debt Denomination and Financial Instability in Emerging Market Economies.
- Barry Eichengreen and Peter Lindert, eds., (1992), The International Debt Crisis in Historical Perspective.
- Charles Calomiris (1998), 'Blueprints for a new global financial architecture'.
All the scandals and rogue traders not minding the store...these sections deserve more substantial treatment in some form in this or another section.* 2.5.1 Junk Bonds; 2.5.2 Specualtive trading in derivatives ; 2.5.3 Mortage Fraud Critical Chris (talk) 23:09, 26 September 2008 (UTC)
- A fraud is not a financial crisis. Nor are derivatives a financial crisis. Most of the recent changes to this article, which add stuff like fraud and derivatives, are misplaced (and unsourced to boot). Eubulides (talk) 04:48, 27 September 2008 (UTC)
- I agree this is a relevant issue but I am not sure where. Also, I'm not sure that the issue of 'rogue trading' is best classified as 'fraud'. Sure, there is often fraud involved, but arguably rogue trading incidents have been examples of stupid mistakes, rather than examples of deliberate crimes. --Rinconsoleao (talk) 08:17, 29 September 2008 (UTC)
Systemic crises or crises at individual institutions?
I've been assuming 'financial crisis' usually refers to system-wide crises, like stock market crashes, currency crises, and systemic banking panics. Therefore I'm largely trying to avoid discussing crises at individual institutions on this page. The failure of individual banks should be discussed at bank run. Large trading losses at individual institutions could be discussed at rogue traders, or in the list of trading losses. I would appreciate suggestions about where to discuss other cases of isolated crises at individual financial institutions.
In general, I think it would be helpful to be clear about when we are talking about isolated problems at one institution and when we are talking about problems in the financial system as a whole. I would strongly suggest that we try to deal with those issues on separate pages. --Rinconsoleao (talk) 08:15, 29 September 2008 (UTC)
Thanks to user Franz Weber for starting a literature section. But it seems long already, and it seems to me that it still lacks a lot of important stuff (some of my suggestions are listed above). Why those references in particular? Are some more important than others? The page will be (much) too long if we simply list everything that has been written about every type of financial crisis. If there is going to be a list, I would suggest making it extremely selective. --Rinconsoleao (talk) 10:08, 17 October 2008 (UTC)
The Wikipedia Manual of Style advises against abbreviations like op. cit., suggesting "named references" instead. However, the Manual of Style also advocates using the most specific reference possible: references to a specific page or specific chapter instead of a whole work. Unfortunately, as far as I know there is no way to use a single named reference to refer repeatedly to different chapters or pages of the same work. Therefore I have used op. cit. instead of "named references". But if someone else knows a better way of dealing with this, please go ahead. --Rinconsoleao (talk) 13:51, 23 January 2009 (UTC)
efficient price material
This edit introduced some material on efficient prices and such. The new material is unreferenced, doesn't seem to fit well with the surrounding material on bubbles, and has a bit of original research flavor. Also, a pre-existing reference was removed. I'm going to revert. Please discuss it here if you want to put it back. CRETOG8(t/c) 17:44, 14 September 2009 (UTC)
NPOV and Uncited sections
- As you say, the Marxist economics section is largely uncited. However as it generally links to pages where the statements are supported I don't think many citations are required. I have also removed the dubious tag; while I am far from an expert on Marxist economics, the statements made look to me like a reasonable representation of the school. Could you give some more detail on why you think this section misrepresents them? Servalo (talk) 07:13, 2 April 2011 (UTC)
- Similar comments apply on Minsky. As the NPOV and citation tags have been there for 5 months without much apparent result I have taken the liberty of removing them. — Preceding unsigned comment added by Servalo (talk • contribs) 07:18, 2 April 2011 (UTC)
Some person has put in a label that the "Marxist therories" is not neutral. That is open to question. In contrast the section on "Wider economic crises" tends to quote and accept the Chicago School (Friedman and Scwarz) arguments by paying lip service "some economists" (stated in par. 2 and par3 of this section). This is not what I call "neutral"!!! Noyder (talk) 21:42, 23 March 2011 (UTC)
- I think since the NPOV label is fairly old, and there's not much actual discussion of the way it's neutral, it would be OK to remove that label. It can always be restored and the discussion revived. CRETOG8(t/c) 00:35, 24 March 2011 (UTC)
Have tried a minor rewording to give the two causality arguments equal weight. Maybe an economist could add an appropriate spokesman for the crisis=>depression paragraph? However I think both views on causality are fairly represented so I'd suggest removing the flag. Servalo (talk) 06:56, 2 April 2011 (UTC)
Pezzuto references (COI?)
I removed recent additions of links to works of Dr. Pezzuto by User:I.Pezutto because there appears to be a conflict of interest. Do those of us who do not have a COI with this content see a need for this material? Jojalozzo 05:36, 29 November 2011 (UTC)
Copyright problem removed
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Dr. Laeven's comment on this article
Dr. Laeven has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
Many financial crises are caused by economic imbalances, such as imprudent fiscal policy, current account deficits, etc. Such imbalances can trigger crises based on weak economic fundamentals. The Latin American debt crisis of the 1980s falls into this category, and so does the Asian financial crisis of 1997-1998. SUch crises based on weak fundamentals should be differentiated from self-fulfilling crises where markets can turn against a country even if fundamentals are not particularly weak, including crises that are the result of contagion. The Causes and consequences section does not due full justice to the fundamentals-based view of crises. A useful reference that gives a broader overview on the issue is:
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
Dr. Laeven has published scholarly research which seems to be relevant to this Wikipedia article:
- Reference 1: Stijn Claessens & M. Ayhan Kose & Luc Laeven & Fabian Valencia, 2013. "Understanding Financial Crises: Causes, Consequences, and Policy Responses," Koc University-TUSIAD Economic Research Forum Working Papers 1301, Koc University-TUSIAD Economic Research Forum.
- Reference 2: Luc Laeven & Fabian Valencia, 2010. "Resolution of Banking Crises; The Good, the Bad, and the Ugly," IMF Working Papers 10/146, International Monetary Fund.
- Reference 3: Stijn Claessens & Luc Laeven & Deniz Igan & Giovanni Dell'Ariccia, 2010. "Lessons and Policy Implications From the Global Financial Crisis," IMF Working Papers 10/44, International Monetary Fund.
Dr. Cecchetti's comment on this article
Dr. Cecchetti has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
This is a nice entry.
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
Dr. Cecchetti has published scholarly research which seems to be relevant to this Wikipedia article:
- Reference : Stephen Cecchetti & Michael R King & James Yetman, 2011. "Weathering the financial crisis: good policy or good luck?," BIS Working Papers 351, Bank for International Settlements.