Document Type

Article

Publication Date

2018

Publication Title

Multinational Finance Journal

Volume

22

Issue

3/4

Pages

35-62

Publisher Name

Multinational Finance Society

Abstract

This paper links the bursting of the housing asset price bubble around 2007 in the U.S. to the instability that arose in financial markets with the bankruptcy of Lehman Brothers in September 2008, and both of these to the Great Recession and the unconventional monetary policy that followed. Similar narratives about the Stock Market Crash of 1929, the Crash of 1987 and the Internet Bubble of 2000 are briefly presented to show their evolving financial nature, describe the financial instabilities produced by them and their costs and, finally examine the responses initiated, primarily, by monetary policy. This analytical synopsis of the four best-known U.S. asset bubble crashes guides us to an articulation of a few basic lessons learned.

Identifier

1096-1879

Comments

Author Posting © Multinational Finance Society, 2018. This article is posted here by permission of the Multinational Finance Society for personal use, not for redistribution. The article was published in Multinational Finance Journal, Volume 22, Issue 3/4, 2018, http://www.mfsociety.org/modules/modDashboard/uploadFiles/journals/googleScholar/1747.html

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

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