Causes of the great recession of 2007-2009: The financial crisis was the symptom not the disease!

Ravi Jagannathan; Mudit Kapoor; Ernst Schaumburg

doi:10.1016/j.jfi.2012.06.002

Causes of the great recession of 2007-2009: The financial crisis was the symptom not the disease!

Ravi Jagannathan^*, Mudit Kapoor, Ernst Schaumburg

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › peer-review

33 Scopus citations

Abstract

Globalization has increasingly made it possible for labor in developing countries to augment labor in the developed world, without having to relocate, in ways not thought possible only a few decades ago. We argue that this large increase in the developed world's effective labor supply, triggered by geo-political events and technological innovations, coupled with the inability of existing institutions in the US and developing nations themselves to cope with this shock, set the stage for the great recession. The financial crisis in the US was but the first acute symptom.

Original language	English (US)
Pages (from-to)	4-29
Number of pages	26
Journal	Journal of Financial Intermediation
Volume	22
Issue number	1
DOIs	https://doi.org/10.1016/j.jfi.2012.06.002
State	Published - Jan 2013

Keywords

Financial crisis
Global imbalance
Globalization
Labor supply shock

ASJC Scopus subject areas

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.jfi.2012.06.002

Cite this

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abstract = "Globalization has increasingly made it possible for labor in developing countries to augment labor in the developed world, without having to relocate, in ways not thought possible only a few decades ago. We argue that this large increase in the developed world's effective labor supply, triggered by geo-political events and technological innovations, coupled with the inability of existing institutions in the US and developing nations themselves to cope with this shock, set the stage for the great recession. The financial crisis in the US was but the first acute symptom.",

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Causes of the great recession of 2007-2009: The financial crisis was the symptom not the disease!

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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