Return of financial crises: old and new causes

Absztrakt

The financial crisis prevents financial markets from functioning efficiently and results in the contraction of economic activity. The causes of the financial crisis should be explored in order to avoid them in the future. Based on an exhaustive analysis of a certain number of selected bibliographic sources, this paper focuses on the main characteristics of financial and equity crises, the asymmetric information approach, the role of uncertainty in the development of financial crises, the short-term commitment of investors (security holders). Today, there is every reason to expect another (possibly global) financial crisis. Financial markets are tightly interconnected, and a new crisis could emerge anywhere, as the global financial crisis results from an unfortunate interplay of internal and external factors. To answer the question of how to respond to worrying imbalances and problems on the forecast horizon, we can only say that the financial crises predicted by market participants rarely occur where and when they are expected and are assumed to arise due to pervasive uncertainty.