Abstract
Although macroeconomic policy may have caused boom to turn to bust, finance itself contributed significantly to the amplitude of the boom and the amplitude of the subsequent contraction.1 Finance built a superstructure based on two assumptions that would prove to be flawed: first, that recessions were a thing of the past (an assumption that markets shared with policymakers [see Chapter 1]), and second, that there would always be too much liquidity rather than too little.
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© 2011 Thomas F. Huertas
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Huertas, T.F. (2011). Too Much of a Good Thing. In: Crisis: Cause, Containment and Cure. Palgrave Macmillan, London. https://doi.org/10.1057/9780230321359_3
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DOI: https://doi.org/10.1057/9780230321359_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-230-29831-6
Online ISBN: 978-0-230-32135-9
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)