After surveying more than twenty-five years of financial crises, it is appropriate to attempt an analysis of the sources of these crises. As noted in this book's introduction, the analysis will proceed in two steps. First is an examination of the systematic processes over the course of the business-cycle expansion that lead to financial crises near the peak. This analysis will be carried out in chapters 11 and 12.
Second is a look at the reasons for the appearance of financial crises at times other than at the business-cyle peak. Chapter 13 examines noncyclical theories of financial crises. Chapter 14 analyzes changes in the conditions and institutional structure of the financial system that have contributed to the timing of financial crises, and to their increasing severity and frequency in the postwar U.S. economy.