Control in an Economic System

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


As we have seen in the example of the 1857 panic, bank panics occur in a common pattern. There is a price disequilibrium in a capital asset market, created by speculators’ reflexivity about future prices and their use of excessive leverage—increasing prices unto a financial bubble which grows and finally bursts. Then the banks which funded the speculation suffer bank runs, as their assets fall in the “debt deflation” from the bubble. And before 2007, this pattern had been identified in the economic writings of Fisher, Keynes, Minsky, and Soros. So why was this pattern a surprise again in 2007?


Ethical Leadership Commercial Bank Chief Executive Officer Hedge Fund Credit Default Swap 
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.


  1. Amin, S. (2010). Global history: A view from the south. Oxford: Pambazuka Press.Google Scholar
  2. Bernake, B. S. (2007, September 11). Global imbalances: Recent developments and prospects. Budesbank Lecture, Berlin, Germany. 2008
  3. Blankfein, L. (2012). http://www.en.wikipedia, Blankfein 2012.
  4. Boas, F. (1911). The mind of primitive man. ISBN 0-313-24004-3. (Online version of the 1938 revised edition at the Internet Archive).Google Scholar
  5. Dash, E., & Craig, S. (2011, January 22). Big paydays return with big profits at wall street banks. The New York Times, B4.Google Scholar
  6. Levi-Strauss, C. (1955). Tristes Tropiques (A world on the wane). English translation by John Weightman and Doreen Weightman.Google Scholar
  7. Morgenson, G., & Rosner, J. (2011). Reckless endangerment: How outsized ambition, greed, and corruption led to economic Armageddon. New York: Henry Holt and Company.Google Scholar
  8. Parsons, T. (1937). The structure of social action. Boston: McGraw Hill (1967 edition, Free Press).Google Scholar
  9. Soros, G. (2008, January 22). The worst market crisis in 60 years. Financial Times.Google Scholar
  10. Trist, E., & Murray, H. (Eds.). (1993). The social engagement of social science, volume II: The socio-technical perspective. Philadelphia, PA: University of Pennsylvania Press.Google Scholar

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

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

Personalised recommendations