Political bubbles
Subtitle: financial crises and the failure of American democracy
By: Nolan McCarty, Princeton University, Keith T. Poole, University of Georgia, Howard Rosenthal, New York University
Contributors: Poole, Keith T.; Rosenthal, Howard, 1939-
Publisher: Princeton University Press
Published: 2013
Language: eng
Number of pages: 356
ISBN-13: 9780691145013
Subjects: Global Financial Crisis, 2008-2009; Political aspects; Financial crises; History
Description: Behind every financial crisis lurks a "political bubble" policy biases that foster market behaviors leading to financial instability. Rather than tilting against risky behavior, political bubbles arising from a potent combination of beliefs, institutions, and interests aid, abet, and amplify risk. Demonstrating how political bubbles helped create the real estate-generated financial bubble and the 2008 financial crisis, this book argues that similar government oversights in the aftermath of the crisis undermined Washington's response to the "popped" financial bubble, and shows how such patterns have occurred repeatedly throughout US history.
Notes: Includes bibliographical references (pages [305]-326) and index.
Table of contents: title: Bubble expectations; title: Ideology; title: Interests; title: Institutions; title: The political bubble of the crisis of 2008; title: Historical lessons of the responses to pops; title: The pop of 2008; title: "Pop"ulism; title: How to waste a crisis.