Causes of the Financial Crisis: an Assessment Using UK Data

We present empirical evidence that the marked rise in liquidity in 2001-2007 was due to large and persistent current account deficits and loose monetary policy. If this increase in liquidity was a pre-condition for the financial crisis that began in July 2007, we can conclude that loose monetary and the deterioration in current account balances were causes of the financial crisis.

MoreLess

Year of publication:	2009-01
Authors:	Martin, Christopher ; Milas, Costas
Institutions:	Rimini Centre for Economic Analysis (RCEA)
Subject:	financial crisis \| liquidity \| monetary policy \| global imbalances

More details

Series:	Working Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Classification:	G01 - Financial Crises ; E44 - Financial Markets and the Macroeconomy ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008520459