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The Explanation of the Subprime Crisis According to the Austrian School: A Defense and Illustration

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  • Fillieule Renaud

    (Université de Lille 1, Cité Scientifique, 59100 Lille, France)

Abstract

This paper aims, first of all, at showing that there is a very close correspondence between the series of events of the subprime cycle and the typical process described by the Austrian business cycle theory. It then answers to some of the main criticisms directed against the Austrian explanation of this crisis. It shows, finally, how major aspects of this cycle – housing bubble, governmental policies of credit and housing, financial innovations – can be integrated to or deduced from the Austrian explanatory framework.

Suggested Citation

  • Fillieule Renaud, 2013. "The Explanation of the Subprime Crisis According to the Austrian School: A Defense and Illustration," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 19(1), pages 101-136, June.
    • Handle: RePEc:bpj:jeehcn:v:19:y:2013:i:1:p:101-136:n:1
    DOI: 10.1515/jeeh-2012-0006
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    References listed on IDEAS

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    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. Ben S. Bernanke, 2007. "Global imbalances: recent developments and prospects," Speech 317, Board of Governors of the Federal Reserve System (U.S.).
    3. repec:fip:fedgsq:y:2007:i:sep11 is not listed on IDEAS
    4. Richard G. Anderson, 2003. "Retail deposit sweep programs: issues for measurement, modeling and analysis," Working Papers 2003-026, Federal Reserve Bank of St. Louis.
    5. Ben S. Bernanke, 2008. "Fostering sustainable homeownership: a speech at the National Community Reinvestment Coalition Annual Meeting, Washington, D.C., March 14, 2008," Speech 375, Board of Governors of the Federal Reserve System (U.S.).
    6. John B. Taylor, 2009. "Getting Off Track - How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis," Books, Hoover Institution, Stanford University, number 3, December.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. WeInflate, WeMalinvest, WeWork
      by Tyler Durden in Zero Hedge on 2023-11-15 03:55:00

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