scholarly journals Reflections on the Great Recession of 2008–09

2010 ◽  
Vol 9 (3) ◽  
pp. 162-173
Author(s):  
Georges de Menil
Keyword(s):  
Financial Institutions ◽  
Great Recession ◽  
Free Markets ◽  
Public Authorities ◽  
The Great Recession ◽  
Economics Profession ◽  
Engineer Stability ◽  
Asian Emerging Markets ◽  
Developed World

In the years that preceded the Great Recession of 2008–09, many financial institutions in the developed world engaged in practices that increased the risk of systemic failure in the markets. The economics profession itself, overly confident of its ability to engineer stability, encouraged financial actors to exceed the traditional dictates of caution. The financial crisis that ensued also revealed many fault lines. One of the most glaring was an absence of international coordination, which encouraged regulatory shopping. Dramatic actions taken by public authorities in the fall of 2008 avoided collapse, but left a legacy of increased moral hazard, to which the best long-term answer is radical structural reform. Asian emerging markets were, by and large, spared the worst of the storm. They should learn from the mistakes of their peers in the developed world, but not reject wholesale the benefits of free markets.

Disruptive Soft Law and Post-Crisis US Reform

2018 ◽  
Author(s):  
Abraham L. Newman ◽  
Elliot Posner
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Regulatory Reform ◽  
The United States ◽  
Soft Law ◽  
Long Term Effects ◽  
The Great Recession ◽  
The Us ◽  
International Interaction

Chapter 6 examines the long-term effects of international soft law on policy in the United States since 2008. The extent and type of post-crisis US cooperation with foreign jurisdictions have varied considerably with far-reaching ramifications for international financial markets. Focusing on the international interaction of reforms in banking and derivatives, the chapter uses the book’s approach to understand US regulation in the wake of the Great Recession. The authors attribute seemingly random variation in the US relationship to foreign regulation and markets to differences in pre-crisis international soft law. Here, the existence (or absence) of robust soft law and standard-creating institutions determines the resources available to policy entrepreneurs as well as their orientation and attitudes toward international cooperation. Soft law plays a central role in the evolution of US regulatory reform and its interface with the rest of the world.

scholarly journals ADAM SMITH’S ESSENTIALS: ON TRUST, FAITH, AND FREE MARKETS

2011 ◽  
Vol 33 (2) ◽  
pp. 249-267 ◽  
Author(s):  
JERRY EVENSKY
Keyword(s):  
Great Recession ◽  
State Power ◽  
Central Theme ◽  
Market System ◽  
Free Markets ◽  
Classic Case ◽  
The Great Recession ◽  
Insight Into ◽  
Looking Back

When trust is shaken, individuals pull back and the market system contracts. Where trust grows, individual energy and creativity are unleashed and the system grows. In Adam Smith’s vision of humankind’s progress, trust is the central theme.The Great Recession represents a classic case of a crisis of trust. Looking back to the work of Smith offers insight into the role of citizens and the State in creating an fruitful market environment based on trust, and the challenge of this process, given the human frailty of individuals (unfortunately, we are not angels) and the potential for State power to be captured and abused.

The Effects of the Great Recession on Family Structure and Fertility

2013 ◽  
Vol 650 (1) ◽  
pp. 214-231 ◽  
Author(s):  
Andrew Cherlin ◽  
Erin Cumberworth ◽  
S. Philip Morgan ◽  
Christopher Wimer
Keyword(s):  
Young Adults ◽  
Great Recession ◽  
Family Life ◽  
Recent Immigrants ◽  
Term Trend ◽  
Younger Women ◽  
The Great Recession ◽  
Intergenerational Coresidence ◽  
Long Term Trend

Recessions can alter family life by constraining the choices that individuals and couples make concerning their family lives and by activating the family’s role as an emergency support system. Both effects were visible during and after the Great Recession. Fertility declined by 9 to 11 percent, depending on the measure, and the decline was greater in states that experienced higher increases in unemployment. The decline was greater among younger women, which suggests postponement rather than forgoing of births. The fall in fertility was sharpest for Hispanics, a result the authors attribute to a drop in Mexican immigration, which reduced the number of recent immigrants, the group with the highest fertility. Substantial increases occurred in the percentage of young adults, single and married, who lived with their parents, augmenting a long-term trend toward intergenerational coresidence. There was a slight decline in divorce and separation in states with higher unemployment.

scholarly journals Capital Adequacy and Liquidity of Global Financial Institutions: A Study of Reforms after the Great Recession

2019 ◽  
Vol 5 (4) ◽  
pp. p419
Author(s):  
Mehdi Monadjemi ◽  
John Lodewijks
Keyword(s):  
Financial Institutions ◽  
Great Recession ◽  
Federal Reserve ◽  
Financial Crises ◽  
Central Banks ◽  
Capital Adequacy ◽  
Federal Reserve Bank ◽  
The Great Recession ◽  
The Great Depression ◽  
Reserve Bank

The global financial crises of 2007-2009 was followed by the Great Recession which was the worst since the Great Depression of 1930s. The crises left significant adverse effects on global growth and employment. Policymakers of affected countries responded differently to the outcomes of these crises. The central banks, including US Federal Reserve Bank and Bank of England, provided ample liquidity for the financial institutions and lowered the interest rate to near zero. The policymakers and regulators realized that capital inadequacy and insufficient liquidity of financial institutions were the main problems preventing the financial firms to protect themselves against major financial crises. In addition, lack of guidelines for compensations encourages managers to take the extra risks. The US Federal Reserve Bank took the initiative, in cooperation with international central banks to introduce rules and regulations to safeguard the financial systems against another major crisis. It is not guaranteed that another episode of financial instability will not happen again. However, with existing regulations on financial institutions in force, the severity of the crises on the whole global financial system may possibly become weaker. This is a conjecture we explore here.

Social Movements

2020 ◽  
pp. 464-478
Author(s):  
Eduardo Romanos
Keyword(s):  
Social Movements ◽  
Collective Action ◽  
Social Movement ◽  
Great Recession ◽  
Model Building ◽  
Long Term Effects ◽  
National Surveys ◽  
The Great Recession ◽  
Cross National

According to cross-national surveys, Spaniards are among the Europeans who participate the most in street protests. At the same time, Spanish social movements have been generally understood as deploying a less radical protest repertoire and a relatively weak organizational model. Building upon central concepts in social movement studies, this chapter analyses these and other features of the Spanish activist tradition as compared to other Western countries. An especial attention is paid to the strongest protest cycles in Spanish recent history: the years of the democratic transition and the Great Recession. In doing so, this chapter aims to address the long-term effects of regime transition on domestic collective action and organized protest.

The Causes and Legacy of the Great Recession in Spain

2020 ◽  
pp. 115-131
Author(s):  
Sebastián Royo
Keyword(s):  
Economic Growth ◽  
Great Recession ◽  
Political System ◽  
Economic Consequences ◽  
The Political ◽  
The European Union ◽  
New Parties ◽  
Political Consequences ◽  
The Great Recession

After over two decades of prolonged economic growth, Spain suffered its worst economic crisis in decades between 2008 and 2014. The political, social, and economic consequences of this crisis were very severe: unemployment increased sharply reaching over 27 per cent; inequalities deepened; and the two-party political system was transformed by the emergence of new parties. The implementation of structural reforms, which intensified as a result of the European Union financial sector bailout of 2012, led to economic recovery. As a result, credit was restored, strong economic growth resumed, and the political system did not implode. Yet, persistently high unemployment (particularly as regards youth and long-term) as well as inequality (and to a certain extent poverty) still persist a decade after the crisis. This chapter looks at the genesis of the crisis and examines the responses to the crisis, as well as its economic, social, and political consequences.

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