The root of the current financial crisis was an artificially induced boom in the real economy, and asset-price markets that subsequently turned to bust. The bust led to a reduction in the values of many assets owned by banks.
The Free Market 27, no. 8 (August 2009) Icelandic Prime Minister Geir Haarde’s resignation this year marked the fi rst political casualty of the current financial crisis that resulted in the collapse of all major banks, a run on deposits, a stock market drop of 90 percent, empty grocery shelves,...
This paper examines what Austrian economists think about deflation and offers a critique of their views. This seems to be of particular importance because Austrians differ in their opinions about deflation,
It is with great trepidation and anticipation that we review Robert Shiller’s new book, The Subprime Solution . Trepidation as to the causes of the problem, which were expected to take a behavioral spin.