History of Financial Crises
To Be Published January 15th 2014 by Routledge – 256 pages
Series: Economics as Social Theory
The recent financial crisis has had more column inches devoted to it than any other occurrence in economics and finance of the past twenty five years. That the behaviour of key actors has been alarmingly unchanged would appear to indicate that lessons may not have been fully learned.
This text attempts to put the situation into historical perspective and analyzes the major crises that have occurred since the eighteenth century, identifying the common patterns related to their sources, propagation mechanisms and resolution.
Then, the author introduces the basic economic concepts that are indissoluble from financial crises - pricing, resource allocation, efficiency, market failure, risk, uncertainty, information, regulation and leverage – before examining the paradigmatic divide in economics concerning how markets work and the scope for government regulatory intervention in markets.
Part One: Early History 1. Tulipmania 2. John Law’s Grand Experiment 3. The South Sea Bubble and the early Stock Markets 4. Taking Stock of the Early Bubbles 5. The British Railway Crisis 6. The American Tradition 7. The Panic of 1907 8. The Crash of 1929 Part Two: Economic Theories of Bubbles 9. Markets, Rationality, and Efficient Allocation of Resources 10. Efficient Market Hypothesis 11. Orthodox Bubble Theories 12. Non-orthodox Bubble Theories 13. Minsky’s Theory of Financial Crisis Part Three: Recent Financial Debacles 14. The Growling Eighties 15. The Roaring Nineties 16. Sub-prime Mortgage Crisis 17. International Experience Part Four: Summing-Up 18. Lessons
Cihan Bilginsoy is Professor of Economics at the University of Utah, USA