Paper Status Tracking
Contact us
[email protected]
Click here to send a message to me 3275638434
Paper Publishing WeChat

Article
Affiliation(s)

University of Trieste, Trieste, Italy

ABSTRACT

In the analysis of the present day crisis, the paper considers a result of commercial banks deregulation: blowing financial transactions, widespread new Keynesian flow of marginal monetary basis, jumpstarting financial instruments, short-term based financial program trading speculation. In this way, the research starts from the last market bubbles collapsed in the years 2000 and 2007-2008: dot-com, subprime and derivatives. Its results confirm the effect of the general persistence of wrong monetary policies, triggering irreversible liquidity, fiscal and interest zero rates traps. The conclusion is that an everlasting crisis is not the consequence of some isolate deregulation of some institution and markets activity in general, neither likely due to some new financial innovative product fallout. On the contrary, what surfaces in August 2007, is the result, after 40 years of monetary debasement and quantitative mismanagement, excessive faith in macroeconomics dangerous ideas and disregard of minor micro-economic laws, associated with the appearance of the huge Eastern competing world, once frozen in the planned economy, a global market oriented environment. The Western welfare State seems likely to finally collapse in a completely free surfacing new market economy.

KEYWORDS

banks, financial crisis, backgrounds and Bretton Woods, gold standard, central banks

Cite this paper

Economics World, May-June 2018, Vol. 6, No. 3, 191-202 doi: 10.17265/2328-7144/2018.03.004

References

Blyth, M. (2013). Austerity: The history of a dangerous idea. New York, NY.

DiMartino, B. D. (2017). Fed up: An insiders take on why the Federal Reserve is bad for America. New York, NY: Barnes & Noble.

Domitrovic, B. Retrieved from http://www.thegoldstandardnow.org/brian-domitrovic-bio

EL-Erian, M. A. (2016). The only game in town: Central banks, instability, and avoiding the next collapse. New York, NY: Random House Audio.

Ferguson, N. (2009). The Ascent of Money. London, UK.

Friedman, M. (1961). Real and pseudo gold standard. The Journal of Law & Economics, 4, 66-79.

Hawtrey, R. G. (1919). Currency and credit. London, UK: Longmans.

Horsefield, J. K. (1982). The “stop of the exchequer” revisited. The Economic History Review New Series, 35(4), 511-528.

Koo, C. R. (2009). The holy grail of macroeconomics: Lessons from Japan’s great recession. Singapore, SG: Wiley.

Mallaby, S. (2016). The man who knew. New York, NY: Penguin Press.

Mundell, R. (1999). A reconsideration of the twentieth century. Retrieved from: http://www.columbia.edu/~ram15/nobelLecture.html

Quinn, S. (1996). Gold, silver, and the Glorious Revolution: arbitrage between bills of exchange and bullion. The Economic History Review, 49, 473-490. doi:10.1111/j.1468-0289.1996.tb00578.xnce

Rueff, J. (1971). The monetary sin of the west. New York, NY: The Macmillan Company.

Simmel, G. (2004). The philosophy of money (Routledge and P. Kegan Eds.). New York, NY: Routledge.

Steil, B. (2013). The battle of Bretton Woods. Princeton, NJ: Princeton University Press.

Triffin, R. (1960). Gold and the dollar crisis: The future of convertibility. New Haven, CT: Yale University Press.

About | Terms & Conditions | Issue | Privacy | Contact us
Copyright © 2001 - David Publishing Company All rights reserved, www.davidpublisher.com
3 Germay Dr., Unit 4 #4651, Wilmington DE 19804; Tel: 1-323-984-7526; Email: [email protected]