Advertisement

Dynamics of Bank Panics

  • Frederick Betz
Chapter
Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)

Abstract

We looked at the historical event of the 1857 bank panic, but what led up to it? What is the dynamic of a financial structure which creates the historical conditions for a crisis? We noted that the two schools of economics had not achieved a synthesis of their different views on an economy, which divided them. Accordingly, economic theory had not been able to explain why the panic occurred. Next we use the cross-disciplinary approach of societal dynamics to understand how the conditions for the 1857 panic had arisen in the US society. Societal dynamics theory analyzes the history of society as a sequence of “stasis” (stable infrastructures)—each altered in time by a historical event which results in a “change” from the prior infrastructure. This sequence of stasis and change is shown in Fig. 4.1.

Keywords

Financial Market Asset Price Equilibrium Price Real Estate Investment Trust Commodity Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Betz, F. (2011). Societal dynamics, Springer. In E. Carayannis (Series Ed.), Springer innovation, technology, and knowledge management series.Google Scholar
  2. Calomiris, C. W., & Schweikart, L. (1991). The panic of 1857: Origins, transmission, and containment. Journal of Economic History, 51(4), 807–834.CrossRefGoogle Scholar
  3. Fisher, I. (1933, October). The debt-deflation theory of the Great Depression. Econometrica.Google Scholar
  4. Keynes, J. M. (1936). The general theory of employment, interest, and money. New York: Harcourt Brace.Google Scholar
  5. Minsky, H. (1975). John Maynard Keynes. New York: Columbia University Press (reprinted in 2008 by Mc Graw Hill).Google Scholar
  6. Soros, G. (1994, April 26). The theory of reflexivity. MIT Department of Economics World Economy Laboratory Conference, Washington, DC. http://www.georgesorose
  7. Weber, M. (1947). From Max Weber: Essays in sociology. ISBN 0-19-500462-0.Google Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Frederick Betz
    • 1
  1. 1.Portland State UniversityPortlandUSA

Personalised recommendations