Český finanční a účetní časopis 2008(4):6-20 | DOI: 10.18267/j.cfuc.285

Causes of Global Financial Crises and Regulation-Failure

Petr Musílek
Prof. Ing. Petr Musílek, Ph.D. - profesor; Katedra bankovnictví a pojišťovnictví, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3, Česká republika; <musilek@vse.cz>.

Global financial crisis is a sharp, brief, ultracyclical deterioration of all or most of a group of financial indicators - illiquidity, financial insolvencies, rate of returns, asset prices, financial institutions failures, and rush out of the real or long-term financial asset into money. Current global financial crisis includes credit crisis, liquidity crisis and investment crisis. We can identify these causes as follows: real estate bubble, credit overexpansion, overspeculation, financial panic, regulation-failure, and imperfect institutional arrangement of global financial market.

Keywords: Global financial crisis; Credit crisis; Real estate crisis.
JEL classification: E44, G10

Published: December 1, 2008  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Musílek, P. (2008). Causes of Global Financial Crises and Regulation-Failure. Czech Financial and Accounting Journal, 2008(4), 6-20. doi: 10.18267/j.cfuc.285
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Akerlof, P. - Romer, P. (1993): Looting: The Economic Underworld of Bancruptcy for Profit. Brookings Papers on Economic Activity, 1993, roč. 25, č. 2, s. 1-73. Go to original source...
    2. Blanchard, O. - Watson, M. (1982): Bubbles, Rational Expectations, and Financial Markets. In.: Wachtel, P. (ed.): Crises in the Economic and Financial Structure. Lanham, Lexington Books, 1982. Go to original source...
    3. Deutsche Börse (2001): Neuer-Markt-Report 2001. Frankfurt am Main, Deutsche Börse, 2001.
    4. Diamond, D. - Dybving, P. (1983): Bank Runs, Liquidity and Deposit Insurance. Journal of Political Economy, 1983, roč. 91, č. 3, s. 401-419. Go to original source...
    5. Dimson, E. - Marsh, P. - Stauton, M. (2002): Triumph of the Optimists. 101 Years of Global Investment Returns. Princeton, Princeton University Press, 2002. Go to original source...
    6. Dvořák, P. (1999): Komerční bankovnictví pro bankéře a klienty. Praha, Linde, 1999.
    7. Federal Reserve System (2008): Flow of Funds Accounts of the United States, Second Quarter 2008. [on-line], Washington, D. C., Federal Reserve System, c2008, [cit. 13. 9. 2008], <http://www.federalreserve.gov/releases/z1/Current/z1r-1.pdf>.
    8. Fisher, I. (1932): Booms and Depressions. New York, Adelphi, 1932.
    9. Johnson, S. (1999): Does Investor Protection Matter? Evidence from Germany's Neuer Markt. Cambridge, Massachusetts Institute of Technology, 1999.
    10. Minsky, H. P. (1995): Financial Factors in the Economics of Capitalism. Journal of Financial Services Research, 1995, roč. 9, č. 3-4, s. 197-208. Go to original source...
    11. Mishkin, F. S. (1999): Lessons from the Asian Crisis. Journal of International Money and Finance, 1999, roč. 18, č. 4, s. 709-723. Go to original source...
    12. NYSE (1980-2000). Fact Book. New York, New York Stock Exchange, 1980-2000.
    13. Revenda, Z. (1999): Centrální bankovnictví. Praha, Management Press, 1999.
    14. Standard & Poor's (2008a): S&P Case-Schiller Home Price Indices. [on-line], New York,,Standard & Poor's, c2008, [cit. 13. 9. 2008], <http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/indices_csmahp/0,0,0,0,0,0,0,0,0,1,1,0,0,0,0,0.html>.
    15. Standard & Poor's (2008b): S&P Global Equity Indices. [on-line], New York, Standard & Poor's, c2008, [cit. 13. 9. 2008], <http://www.globalindices.standardandpoors.com/sandp/CompositeReturns?rp=returns&report=compositex&index=bmi&type=b¤cy=us>.
    16. Thomson Reuters (2008): Global Collateralized Debt Obligations. [on-line], Debt Capital Markets Review, 2008, č. 2, c2008, [cit. 13. 9. 2008], <http://www.thomsonreuters.com/content/PDF/financial/league_tables/de/2008/2Q08_debt_capital.pdf>.
    17. Thomson Reuters (2007): Global Collateralized Debt Obligations. [on-line], Debt Capital Markets Review, 2007, č. 4, c2007, [cit. 13. 9. 2008], <http://www.thomsonreuters.com/content/PDF/financial/league_tables/de/2007/4Q07_Debt_Capital_Markets_R1.pdf>.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content