Publications
Detailed Information
The role of financial innovations in the current global financial crisis
Cited 0 time in
Web of Science
Cited 0 time in Scopus
- Authors
- Issue Date
- 2009-04
- Citation
- Seoul Journal of Economics, Vol.22 No.2, pp. 123-144
- Keywords
- Financial crisis ; Globalization ; Financial market ; Financial innovations
- Abstract
- Several macroeconomic missteps such as global imbalance have
been blamed for causing the current international financial crisis.
Others have also blamed the excessive Wall Street greed for the
crisis. While the above factors may have played a supporting role
in the financial crisis, they were certainly not the primary causes
of the crisis. The root cause of the current international financial
crisis is the abuse of various innovative financial techniques and
new investment instruments that have been developed. In recent
decades, the pace of financial innovations has accelerated precipitously,
which in turn has driven the explosive growth in both the
size of global financial markets and its array of new financial
products and techniques. The current crisis is primarily the direct
result of the abuse of some of the latest and most innovative
financial techniques, most of which are too esoteric and technical
to be comprehended correctly by both government regulators and
academic economists. Many crises are usually a byproduct of the
cycle of financial innovations.
- ISSN
- 1225-0279
- Language
- English
- Files in This Item:
Item View & Download Count
Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.