An investigation into the dynamics of financial catastrophe
View/ Open
Date
2012Author
Raghavendra, Srinivas
Metadata
Show full item recordUsage
This item's downloads: 535 (view details)
Recommended Citation
Bhaduri, Amit; Guttal, Vishwesha (2012) An Investigation into the Dynamics of Financial Catastrophe. Working Paper
Abstract
The paper captures the dynamics of interaction between the real and the
nancial sector in a model of endogenous credit that exhibits multiple
steady states and generates phase transitions with catastrophic abrupt-
ness. This resembles aspects of nancial meltdowns witnessed in global
capital markets in recent times. The paper also explains how nan-
cial crisis assume dierent characteristics under alternative monetary
arrangements in regimes of prot- and wage-led growth and, concludes
with linking the analysis to the recent nancial crises in the United
States and in the Eurozone.
Description
Working paper