Financialisation and the financial and economic crises: Theoretical framework and empirical analysis for 15 countries

Arbeitspapier

This paper analyses the long-run effects of financialisation and of the recent financial and economic crises for 15 countries. In order to provide a theoretical framework, we first outline three types of regimes under the conditions of financialisation, namely a debtled private demand boom, an export-led mercantilist, and a domestic demand-led regime. We then take a look at the sectoral financial balances of the main macroeconomic sectors and at the growth contributions of the demand aggregates for each of the 15 countries, focusing in particular on the trade cycle before the crises. This enables us to cluster these countries according to the typology of regimes and describe the development dynamics among various groups, which were complementary and often mutually reinforcing, in the years leading up to the crises. Subsequently, we focus on the period following the outbreak of the crises and, by considering transmission mechanisms and main obstacles to recovery, analyse how countries in each of these clusters were affected. Finally, we focus on the regime shifts which have taken place in the course of the crises and we discuss the implications of these recent developments for the world economy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 54/2015

Classification and Topics

• Classification: Wirtschaft ; Personal Income, Wealth, and Their Distributions ; Factor Income Distribution ; Financial Markets and the Macroeconomy ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; Studies of Particular Policy Episodes ; Macroeconomic Aspects of International Trade and Finance: General ; Economic Growth of Open Economies ; Financial Crises ; Crisis Management
• Subject: finance-dominated capitalism ; financialisation ; financial and economic crises ; trade cycle ; financial balances ; distribution of income ; current account imbalances

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dodig, Nina ; Hein, Eckhard ; Detzer, Daniel
• Event: Veröffentlichung
• (who): Hochschule für Wirtschaft und Recht Berlin, Institute for International Political Economy (IPE)
• (where): Berlin
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/114501
• Last update: 10.03.2025, 11:46 AM CET