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Key Economic Policy Lessons From The 2008 Financial Crisis

Author

Listed:
  • Petr Teply
  • Libena Cernohorska
  • Jan Cernohorsky

    (Charles University
    University of Pardubice
    University of Pardubice)

Abstract

The current turmoil has shaped the world financial market. While the crisis materialized in 2008, it already began in mid-2000s when the US economy shifted to imbalanced both internal and external macroeconomic positions. We see three key causes of these problems – loose US monetary policy in early 2000s, US government guarantees issued on the securities by government-sponsored enterprises and financial innovations such as structured credit products. We have discovered both negative and positive lessons deriving from this crisis and divided the negative lessons into three groups: financial products and valuation, processes and business models, and strategic issues. Moreover, we address key risk management lessons derived from the current crisis and recommend policies that should help diminish the negative impact of future potential crises.

Suggested Citation

  • Petr Teply & Libena Cernohorska & Jan Cernohorsky, 2010. "Key Economic Policy Lessons From The 2008 Financial Crisis," Anadolu University Journal of Social Sciences, Anadolu University, vol. 10(2), pages 123-134, May.
    • Handle: RePEc:and:journl:v:10:y:2010:i:2:p:123-134
    as

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    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2010-2/2010_02_09.pdf
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    References listed on IDEAS

    as
    1. Milan Rippel & Petr Teplý, 2011. "Operational Risk - Scenario Analysis," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(1), pages 23-39.
    2. Radovan Chalupka & Petr Teply, 2008. "Operational Risk Management and Implications for Bank’s Economic Capital – a Case Study," Working Papers IES 2008/17, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Sep 2008.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial crisis; securitization; liquidity risk; risk management;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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