Causes, Features and Consequences of Financial Crises: a retrospective cross-country analysis

Abstract

Given the volatility of financial crises around the world, there is an urgent need to investigate the causes of the emergence, the peculiarities of development and the consequences of financial crises in the countries of the world. Among the main causes of financial crises, the author highlights the frequent collapse of stock markets, the rapid development of new stock instruments without their regulation and control of their circulation, sharp flows of capital between different parts of the world, large volumes of speculation, weak regulatory regulation of the stock market. The study of economic relations in the chain "financial crisis-the policy of regulators on the elimination of its consequences-the change in the strategies of financial agents in the financial markets" for 1788-2008 proved that the behavior of financial agents in the future depends on the nature of the crisis. As a result it is possible to distinguish four global strategic vectors of performance-UAH Duration, nights financial agents HHI XXI century, which is formed in response to the financial crisis and gar post-crisis regulatory action. Based on the generalization of the experience of different countries, four types of financial crises have been identified in the article, which have often occurred simultaneously in the same countries. This suggests that in the absence of a well-balanced public anti-crisis economic policy or its misuse, financial crises of the same type may generate financial crises of other types, deepening the overall level of economic decline of the country and complicating the post-crisis recovery. Such crises are suggested to be called "derivative crises". It has been determined that for optimal strategic planning of development in the post-crisis period, financial agents should also consider the probability of an emerging crisis during or after the end of the basic crisis (the crisis that originated).