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collapse of the financial system was caused only by the popping of the housing bubble (“accident”) and the herding behavior of …
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We analyze the mortgage meltdown as a “normal accident” (Perrow, 1984). We begin by briefly outlining normal accident … theory; both Perrow's original version and Mezias' (1994) subsequent extension. We then use normal accident theory to analyze … and wrongdoing; a vexing question for both normal accident theory and observers of the meltdown. We conclude by briefly …
Persistent link: https://www.econbiz.de/10013154077
One of the most striking aspects of the recent recession is the collapse in international trade. This paper uses disaggregated data on U.S. imports and exports to shed light on the anatomy of this collapse. We find that the recent reduction in trade relative to overall economic activity is far...
Persistent link: https://www.econbiz.de/10013143182
One of the most striking aspects of the recent recession is the collapse in international trade. This paper uses disaggregated data on U.S. imports and exports to shed light on the anatomy of this collapse. We find that the recent reduction in trade relative to overall economic activity is far...
Persistent link: https://www.econbiz.de/10012462647
The handling of the sovereign debt crisis in the European Union (EU) has raised fears that decision making in supranational organization and its member states has become less democratic and that European Central Bank now calls the shots in Europe. This article confronts this pessimistic...
Persistent link: https://www.econbiz.de/10013097391
This paper looks at macroeconomic factors behind the current crisis. The first part looks at how global macroeconomic trends-including sustained strong growth, low real interest rates, and high saving rates-provided an environment conducive to increased financial risk-taking. The second part...
Persistent link: https://www.econbiz.de/10013144065