Financial Crises: Understanding the Postwar U.S. Experience

By Martin H. Wolfson | Go to book overview

14
The Changing Financial System

This chapter will explore some additional explanations for the different behavior of financial crises beginning in the 1980s: the increase in crises related to speculative activity, their increased frequency and severity, and the particularly serious problems of the banks and thrifts. Related to these changes, though, are some further differences (noted in chapter 12) in the behavior of financial crises.

The most obvious difference was the appearance of financial crises during the 1983-90 business-cycle expansion, before the peak of the cycle had been reached. But if we examine the cyclical financial crises beginning in 1966 and ending in 1991, we find an interesting pattern of change.

The crisis in 1966 was the mildest of all those we have examined. It also took place during the beginning of a growth recession, during which GDP growth slowed but did not become negative. The corporations during that period of time were under less financial pressure, and appeared to have less difficulty meeting payment commitments. The crisis in 1966 clearly was a transition point between the early postwar years ( 1945-65), during which no financial crises occurred, and the years beginning in 1966, during which financial crises reappeared.

Likewise, the cyclical crises at the other end of the 1966-91 period also differed from the general pattern. As opposed to the 1966 crisis, the crises in 1982 and 1991 were characterized by increasing financial difficulties for both the corporate and banking sectors. 1 If we include also the financial crises during the 1983-90 business-cycle expansion, it has been the case that financial crises since 1982 have become more frequent, more severe, more related to speculative activity, and more difficult to manage. It was suggested in the first edition of this book that perhaps 1982, as well as 1966, marked the transition point between periods of time characterized by financial crises of a different type. It seems that this suggestion has been confirmed.

But it should be kept in mind that the recent crises have been managed without the kind of serious damage to the real economy that followed financial crises in the Great Depression and earlier. So in the twentieth century in the United States, there apparently have been four separate time periods: (I) up

-212-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Financial Crises: Understanding the Postwar U.S. Experience
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 269

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.