Arbeitspapier
Government Policies and Financial Crises: Mitigation, Postponement or Prevention?
Abstract In the aftermath of the Great Recession, governments have implemented several policy measures to counteract the collapse of the financial sector and the downswing of the real economy. Within a framework of Minsky-Veblen cycles, where relative consumption concerns, a debt-led growth regime and financial sector confidence constitute the main causes of economic fluctuations, we use computer simulations to assess the effectiveness of such measures. We find that the considered policy measures help to mitigate the impact of financial crises, though they do so at the cost of shortening the time between the initial financial crisis and the next. This result is due to an increase in solvency and confidence induced by the policy measures under study, which contribute to an increase in private credit and, thereby, increase effective demand. Our results suggest that without a strengthening of financial regulation any policy intervention remains incomplete.
- Sprache
-
Englisch
- Erschienen in
-
Series: wiiw Working Paper ; No. 126
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Fiscal Policy
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Financial Crises
General Financial Markets: Government Policy and Regulation
Financial Institutions and Services: Government Policy and Regulation
Crisis Management
Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
- Thema
-
financial crisis
financial regulation
fiscal policies
Minsky-Veblen cycles
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kapeller, Jakob
Landesmann, Michael
Mohr, Franz X.
Schütz, Bernhard
- Ereignis
-
Veröffentlichung
- (wer)
-
The Vienna Institute for International Economic Studies (wiiw)
- (wo)
-
Vienna
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kapeller, Jakob
- Landesmann, Michael
- Mohr, Franz X.
- Schütz, Bernhard
- The Vienna Institute for International Economic Studies (wiiw)
Entstanden
- 2016
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