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Economic Law and Economic Crisis. Where Do We Go From Here? Economic, Legal and Political Dimension

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  • Rastislav Funta

    (Charles University in Prague)

Abstract

The impact of the economic crisis, which has rapidly developed and spread into a global economic shock, has become increasingly severe. The period immediately before the crisis was characterized by a combination of the following factors (hereinafter “origins of the crisis”): Blind belief in the strength of large financial institutions; Incapacity of management to assess real risk; Accumulation of public and private debt; Low interests rates and high world growth; Failure of market discipline; Lack of checks and balances; Shadow banking system and its risks; Rating agencies practices, etc. Developing a systém that comes closer to the ideal combination of economic freedom and open competition seems to be necessary. This is of paramount importance, because a healthy financial systém is crucial to any working market economy.

Suggested Citation

  • Rastislav Funta, 2011. "Economic Law and Economic Crisis. Where Do We Go From Here? Economic, Legal and Political Dimension," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 65-71, March.
    • Handle: RePEc:cmn:journl:y:2011:i:1:p:65-71
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    References listed on IDEAS

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    2. Palley, Thomas I., 2009. "America's exhausted paradigm: Macroeconomic causes of the financial crisis and great recession," IPE Working Papers 02/2009, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Tobias Adrian & Adam B. Ashcraft & Hayley Boesky & Zoltan Pozsar, 2013. "Shadow banking," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 1-16.
      • Tobias Adrian & Adam B. Ashcraft & Hayley Boesky & Zoltan Pozsar, 2010. "Shadow banking," Staff Reports 458, Federal Reserve Bank of New York.
    4. Harold L. Cole & Lee E. Ohanian, 2004. "New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 779-816, August.
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    Cited by:

    1. Franjo Stiblar, 2011. "The Global Crisis and the Western Balkans," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 3, pages 23-46, September.
    2. Zuzana Machova & Igor Kotlan, 2014. "Expenditures on Collective and Individual Services: Discussion on the Classification of Government Expenditures with Regard to their Inclusion into Growth Models," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 287-296, December.
    3. Nadezda Siskova, 2013. "The Impact of the Eurozone’s Crisis on the Institutional Framework and National Law of Member States – Some Considerations," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 293-300, December.

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