IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-27610-9_3.html
   My bibliography  Save this book chapter

The Current Financial Crisis and the Origins of Excessive Liquidity

In: The Post ‘Great Recession’ US Economy

Author

Listed:
  • Philip Arestis
  • Elias Karakitsos

Abstract

The prevalent view is that the current credit crisis has its origin in the bursting of the housing bubble. But what is missing from this view is that the financing of a bubble is only possible through a corresponding increase in credit — no credit, no bubble (see Karakitsos, 2008). Thus at the heart of the current woes lies the excessive liquidity that had been put in place in the last ten years or so.2 This liquidity financed in the first instance the internet bubble, but because there was no deleverage following the bursting of this bubble the liquidity went on to finance other bubbles, including housing, private equity and commodities. Thus, the housing bubble is a transformation of the previous internet bubble.

Suggested Citation

  • Philip Arestis & Elias Karakitsos, 2010. "The Current Financial Crisis and the Origins of Excessive Liquidity," Palgrave Macmillan Books, in: The Post ‘Great Recession’ US Economy, chapter 3, pages 41-57, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27610-9_3
    DOI: 10.1057/9780230276109_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Idris Gautama So & Hasnah Haron & Anderes Gui & Elfindah Princes & Synthia Atas Sari, 2021. "Sustainability Reporting Disclosure in Islamic Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?," Sustainability, MDPI, vol. 13(23), pages 1-23, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-27610-9_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.