sovereign debt crisis have been driven mainly by weak growth prospects and heightened sovereign risk and to a lesser extent, by …

In this paper, we present the root cause of the American financial crisis in 2007. We show that financial integration … and capital flow volatility is the factor that creates a climate conducive to the emergence of the crisis in the USA and … recent years had a pro-cyclical character. We show also that this behavior was the root cause of the crisis and even previous …