Sovereign debt crises in emerging markets are usually associated with liquidity and banking crises within the economy. This connection is suggested by both anecdotical and empirical evidence. The conventional view is that the domestic financial turmoil is caused by foreign creditors’ retaliation. Yet, there is no clear-cut evidence supporting the existence of “classic” default penalties (e.g., ...

This article seeks to shed light on the development over the past decades of the concept of economic governance. It asks what is understood by economic governance and what role the social dimension has played. The article offers an analysis of the problems and possible issues confronting the EU as it seeks ways to address the sovereign debt crisis by embarking on deeper economic integration. Th...

Prior research suggests that the current global economic crisis may be negatively affecting population mental health. In that context, this paper has several goals: (1) to discuss theoretical and conceptual explanations for how and why economic downturns might negatively affect population mental health; (2) present an overview of the literature on the relationship between economic recessions an...

The recent episodes of financial turmoil in Mexico, East Asia, Russia, Brazil, and Argentina are often dubbed financial crises. However, the severe downturns in equity markets, abrupt currency devaluations, and massive capital flight that characterize these events can still be deemed compatible with efficient and functioning financial markets. Thus, why is a financial crisis a “crisis?” To answ...

EGINNING WITH THE stock market crash in October 1929, the United States suffered a series of financial crises that mark the Great Depression. In each crisis, the number of bank failures and the declines in bank reserves, the money stock and economic activity were greater than in the preceding episodes. Many researchers investigating the causes of financial crises during the Great Depression hav...

*Correspondence: Sgouris Sgouridis, Masdar Institute of Science and Technology, P.O. Box 54224, Abu Dhabi, UAE e-mail: [email protected] The universal adoption of fiat currencies and of the fractional reserve banking system coincided with access to and ability to utilize energy-dense fossil fuels leading to unprecedented rates of economic expansion.The depletion of economically recoverabl...

Another example of transformative philanthropy is related to India’s recovery from its economic crisis of 1991. Other countries had previously had similar crises and failed to implement good policies that would have allowed them to recover from their crises. By way of contrast, India implemented good policies and recovered in a short time frame. Most of the key actors who ensured that India imp...

Henryk Grossman was the first person to systematically explore Marx’s explanation of capitalist crises in terms of the tendency for the rate of profit to fall and to place it in the context of the distinction between use and exchange value. His The law of accumulation and breakdown of the capitalist system remains an important reference point in the Marxist literature on economic crises. That l...

Hard times give rise to greater demand for protection. International trade rules include provisions that allow for raising barriers to aid industries when they suffer economic injury. Yet widespread use of flexibility measures may undermine the trade system and worsen economic conditions. How do states balance these conflicting pressures? This article assesses the effect of crises on cooperatio...