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Financial Crises in Comparative Perspective – Crisis Management and its Phenomenon of Repetition/Return

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  • Zemla Sebastian

    (PhD Student at the University of Applied Sciences Burgenland, Austria and Juraj Dobrila University of Pula, Faculty of Economics and Tourism “Dr. Mijo Mirković”, Croatia)

Abstract

Crises cause attentiveness in our society and awaken, depending on the degree of consternation, our ongoing interest. These events include financial crises, phenomenal incidents that shock the economic world and pose significant challenges for the governments. Two crises which stand out in this context are the Great Depression in 1929 and the financial crisis in 2007/2008. In addition to the comparative approach, the paper focuses directly on the typical repetitive mechanism (“recurrent pattern of banking and sovereign debt crises” (Reinhart & Rogoff, 2011): overheating, the forming of a bubble and the bursting of the bubble, largely started in the USA. Specific aspects included in this research area are crisis management in the decades mentioned above, the role of governments and banks, as well as the observation as to which crisis can be expected next. We can conclude that the current monetary systems led by complex financial instruments and addicted to low interest rates are prone to deliver another serious financial crisis.

Suggested Citation

  • Zemla Sebastian, 2020. "Financial Crises in Comparative Perspective – Crisis Management and its Phenomenon of Repetition/Return," Naše gospodarstvo/Our economy, Sciendo, vol. 66(1), pages 65-77, March.
  • Handle: RePEc:vrs:ngooec:v:66:y:2020:i:1:p:65-77:n:6
    DOI: 10.2478/ngoe-2020-0006
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    References listed on IDEAS

    as
    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    2. Dimitris N. Chorafas, 2009. "Financial Boom and Gloom," Palgrave Macmillan Studies in Banking and Financial Institutions, Palgrave Macmillan, number 978-0-230-23583-0.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial crises; comparison of crises; crisis management; government measures; future inevitability;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • N2 - Economic History - - Financial Markets and Institutions

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