Monetary Policy and The Subprime Crisis. An Austrian Approach

Business & Finance, Economics, Money & Monetary Policy
Cover of the book Monetary Policy and The Subprime Crisis. An Austrian Approach by Tino Förster, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Tino Förster ISBN: 9783656737582
Publisher: GRIN Verlag Publication: September 8, 2014
Imprint: GRIN Verlag Language: English
Author: Tino Förster
ISBN: 9783656737582
Publisher: GRIN Verlag
Publication: September 8, 2014
Imprint: GRIN Verlag
Language: English

Bachelor Thesis from the year 2014 in the subject Economics - Monetary theory and policy, grade: 1,0, Martin Luther University, language: English, abstract: The role of central banks and monetary policy in modern economies is a highly controversial topic. This paper attempts to show the relationship between monetary policy and the development of economic crisis, especially the recent Subprime Crisis in the USA. For this purpose the first part of the paper examines the Austrian theory of the business cycle and its illustration, the capital-based macroeconomics model. According to the Austrian theory artificially low interest-rates are responsible for misallocations of resources within the in-tertemporal capital structure and, consequently, reoccurring fluctuations within the eco-nomic system. The second part of the paper applies the Austrian theory of the business cycle to the Sub-prime Crisis and investigates the role of the Federal Reserve System for the development of the crisis. Ultimately, this paper states that expansionary monetary policy and flawed government regulations were the cause for unbalanced changes in the American structure of production and the recession.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Bachelor Thesis from the year 2014 in the subject Economics - Monetary theory and policy, grade: 1,0, Martin Luther University, language: English, abstract: The role of central banks and monetary policy in modern economies is a highly controversial topic. This paper attempts to show the relationship between monetary policy and the development of economic crisis, especially the recent Subprime Crisis in the USA. For this purpose the first part of the paper examines the Austrian theory of the business cycle and its illustration, the capital-based macroeconomics model. According to the Austrian theory artificially low interest-rates are responsible for misallocations of resources within the in-tertemporal capital structure and, consequently, reoccurring fluctuations within the eco-nomic system. The second part of the paper applies the Austrian theory of the business cycle to the Sub-prime Crisis and investigates the role of the Federal Reserve System for the development of the crisis. Ultimately, this paper states that expansionary monetary policy and flawed government regulations were the cause for unbalanced changes in the American structure of production and the recession.

More books from GRIN Verlag

Cover of the book Prosoziales Verhalten und die Entwicklung von Regelverständnis by Tino Förster
Cover of the book Marketing im Krankenhaus by Tino Förster
Cover of the book Möglichkeiten der theoretisch-empirischen Untersuchung sprechkünstlerischer Äußerungen by Tino Förster
Cover of the book Über Arthur Schnitzlers ´Reigen´ mit Fokus auf das Thema Zensur by Tino Förster
Cover of the book Das Konzept der Antipädagogik im Überblick by Tino Förster
Cover of the book Vorstellung und Analyse des Schulbuches 'Deutschprofi A 2' by Tino Förster
Cover of the book Von der Instruktion zur Konstruktion - Herausforderung für die berufliche Bildung by Tino Förster
Cover of the book Anlage-Umwelt-Problematik aus Sicht der Biowissenschaften by Tino Förster
Cover of the book Andreas Flitners 'Ewige Themen der Reform' und deren Umsetzung an der Reformschule 'Summerhill' by Tino Förster
Cover of the book The Economic Value of Natural and Environmental Resource by Tino Förster
Cover of the book Am Ende der Geschichte - Vilém Flusser und die menschliche Kommunikation an der Apokalypse der historischen Welt by Tino Förster
Cover of the book Differenzierung im Sportunterricht by Tino Förster
Cover of the book Kommunikationspsychologie im gemeindepädagogischen Kontext by Tino Förster
Cover of the book Eignung von Speedskating und Roller Derby für Kinder und Jugendliche by Tino Förster
Cover of the book Forstmonitoring by Tino Förster
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy