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Unpublished Paper
The Subprime Crisis
Quarterly Journal of Austrian Economics (2012)
  • Adrian Ravier
  • Peter Lewin, University of Texas at Dallas
Abstract

This article offers an analysis of the causes of the subprime crisis, explaining that it is not an isolated incident and that we should concentrate our attention on the Fed’s monetary policy and pressures on the banking system received from the U.S. government for flexible lending. It also critically examines the Fed’s exit strategy and fiscal policies that the government is taking to create jobs and stimulate the economy. We conclude that it should be no surprise if the U.S. economy should fall into a new cycle in the coming years, even though economics does not provides the tools to predict the precise timing of it.

Keywords
  • housing bubble,
  • Federal Reserve,
  • savings,
  • deregulation,
  • Austrian,
  • business cycle,
  • Keynes,
  • Leijonhufvud
Disciplines
Publication Date
2012
Citation Information
Adrian Ravier and Peter Lewin. "The Subprime Crisis" Quarterly Journal of Austrian Economics Vol. 15 Iss. 1 (2012)
Available at: http://works.bepress.com/adrian_ravier/1/