Journal Article

Great crashes in history: have they lessons for today?

G Wood

in Oxford Review of Economic Policy

Published on behalf of The Oxford Review of Economic Policy Ltd

Volume 15, issue 3, pages 98-109
Published in print September 1999 | ISSN: 0266-903X
Published online September 1999 | e-ISSN: 1460-2121 | DOI: http://dx.doi.org/10.1093/oxrep/15.3.98
Great crashes in history: have they lessons for today?

More Like This

Show all results sharing these subjects:

  • Economic Development and Growth
  • Public Economics
  • Political Economy
  • Public Policy

GO

Show Summary Details

Preview

Crashes in asset markets have been common throughout history, while financial crises, defined as crises in the banking system, have in some countries and periods been as common, and in others much more rare. This article examines historical attitudes to those events, and looks at some of the events themselves. It is concluded first, that crashes need not inevitably be followed by crises; second, that crashes without crises do not have serious effects on the economy; and third, that there is a policy instrument, the lender of last resort, to prevent financial crises from occurring even should there be a substantial preceding fall in asset markets. These lessons from history, so it is argued, hold for recent events in South-east Asia and, indeed, apply generally to any economy. The present can still learn from the past.

Journal Article.  0 words. 

Subjects: Economic Development and Growth ; Public Economics ; Political Economy ; Public Policy

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.