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oapen-20.500.12657-268322022-04-26T12:37:15Z Explaining Financial Crises Radke, Marc Peter Approach Beauty Contest Theory Crises Cyclical Explaining Financial Financial Crises Financial Stability Long-Run Rationality Radke Theorie Währungskrise bic Book Industry Communication::K Economics, finance, business & management::KC Economics::KCA Economic theory & philosophy bic Book Industry Communication::K Economics, finance, business & management::KC Economics::KCB Macroeconomics::KCBM Monetary economics This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financial crises are a recurrent phenomenon generally accompanied by excessive boom-bust cycles. Secondly, the frequency of financial crisis cycles is very irregular. Thirdly, most financial crisis cycles are initiated by positive shocks to profit expectations which induce an unsustainable build-up of financial fragility driven by <I>irrational exuberance</I>. The present approach is based on a sophisticated balancesheet structure with many assets, as well as on an expectation formation scheme which combines the rational expectations hypothesis with Keynes’ <I>Beauty Contest Theory</I>. 2019-01-10 23:55 2018-12-01 23:55:55 2020-01-16 13:11:37 2020-04-01T11:26:07Z 2020-04-01T11:26:07Z 2018 book 1003213 OCN: 1082991290 9783631754375 http://library.oapen.org/handle/20.500.12657/26832 eng Hohenheimer volkswirtschaftliche Schriften application/pdf n/a 1003213.pdf Peter Lang International Academic Publishers 10.3726/b13957 10.3726/b13957 e927e604-2954-4bf6-826b-d5ecb47c6555 9783631754375 53 430 Bern open access
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This book develops a new theoretical approach to the explanation of systemic financial crises in industrial and emerging market countries. In contrast to standard models, the present <I>cyclical</I> approach is consistent with the following three stylized facts. Firstly, systemic financial crises are a recurrent phenomenon generally accompanied by excessive boom-bust cycles. Secondly, the frequency of financial crisis cycles is very irregular. Thirdly, most financial crisis cycles are initiated by positive shocks to profit expectations which induce an unsustainable build-up of financial fragility driven by <I>irrational exuberance</I>. The present approach is based on a sophisticated balancesheet structure with many assets, as well as on an expectation formation scheme which combines the rational expectations hypothesis with Keynes’ <I>Beauty Contest Theory</I>.
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