Theories of Financial Crises

Abstract

This book surveys four contemporary theories of financial crises. These four were chosen from a larger collection of work because they maintain prominence in current discussions. In other words, the first financial crisis of the twenty-first century has garnered significant interest in rethinking many aspects of macroeconomic and financial economics. Some of the focus is on the effectiveness of theory, including theories of financial crises. It is clear from these discussions that the theories presented in this book hold a central place in the re-evaluation. Consequently, these four theories are the focus of both this chapter and several of the later chapters.