Review Manias, Panics, and Crashes: A History of Financial Crises
by ROBERT Z. ALIBER, CHARLES P. KINDLEBERGER
Financial markets are self-destructive and defeating mainly from its highly volatile and sensitive nature. Such a trait made it susceptible to failure, crises, and speculative excess. Persistent declines and pitfalls could attest to this that the system faced ever since the dawn of its becoming.
Manias, Panics, and Crashes examine and probes deeper into popular declines in the financial landscape. It details financial challenges that ransacked the East Asian region and the ramifications of the Mexican crisis to the 1992 Sterling downfall. Beyond this, the historical discussion brings out interesting questions in dire need of answers.
This updated and revised edition was written to curate the entire history of the financial system, including focal events that persisted and brought danger to it. Its primary objectives are to observe and assess negative trends that surfaced in the field with the intention of knowing how to negate them once they yet again emerge. As this became a fundamental premise of the book, it also brings a logic that the financial structure is, however, to be defined, as its fluid nature does not conform to singular movement. This is true as markets continue to rise and fall.
In this groundbreaking book, the author focused on how thick and complex the financial system is by analyzing the interweaving patterns present in it. Going deeper, the author put emphasis that pitfalls and crashes all share a commonality; a rhythm that consistently inhibits the system and as this is.
About the Authors
Charles Kindleberger was an economic and financial historian to which the majority of his published works center on the narration of the overall financial system history. He managed to write 30 books, and one of the most laudable additions to financial literature is his 1978 Manias, Panics, and Crashes. Kindleberger is also a popular proponent of the hegemonic stability theory and is considered as the “Master of the Genre” on the financial crises.
Robert Aliber is Professor Emeritus of International Economics and Finance at the University of Chicago Booth School of Business, USA. He was director of the Center for Studies in International Finance. He was part of the research staff for the Committee for Economic Development and Commission on Money and Credit.
Table of Contents
List of Tables
Foreword by Robert M. Solow
- Chapter 1: Financial Crises: A Hardy Perennial
- Chapter 2: The Anatomy of Financial Crisis
- Chapter 3: Speculative Manias
- Chapter 4: Fueling the Flames: The Expansion of Credit
- Chapter 5: The Critical Stage- When the Bubble Is About to Pop
- Chapter 6: Euphoria and Paper Wealth
- Chapter 7: Bernie Madoff: Frauds, Swindles, and the Credit Cycle
- Chapter 8: International Contagion 1618-1930
- Chapter 9: Bubble Contagion: Mexico City to Tokyo to Bangkok to New York, London, Reykjavik
- Chapter 10: Euromania and Eurocrash
- Chapter 11: Policy Responses: Benign Neglect, Exhortation, and Bank Holidays
- Chapter 12: The Domestic Lender of Last Resort
- Chapter 13: The International Lender of Last Resort
- Chapter 14: The Lehman Panic- An Avoidable Crash
- Chapter 15: The Lessons of History
Afterword by Lord Robert Skidelsky