Martin, C. and Milas, C., 2009. Causes of the Financial Crisis:An Assessment using UK Data. Working Paper. Bath, U. K.: Department of Economics, University of Bath. (Bath Economics Research Working Papers; 18/09)
We present empirical evidence that the marked rise in liquidity in 2001-2007 was due to large and persistent current account deficits and loose monetary policy. If this increase in liquidity was a pre-condition for the financial crisis that began in July 2007, we can conclude that loose monetary and the deterioration in current account balances were causes of the financial crisis.
|Item Type ||Reports/Papers (Working Paper)|
|Creators||Martin, C.and Milas, C.|
|Uncontrolled Keywords||liquidity,monetary policy,financial crisis,global imbalances|
|Departments||Faculty of Humanities & Social Sciences > Economics|
|Research Centres||Bath Economics Research|
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