Borders of free market and common sense in the light of financial crises of American economy

Piotr Borowski

Abstract


The purpose of this paper is to present the development of American economy from the perspective of cyclic downturns, which have been occurring by changes of the money supply and fluctuations of output and employment (business cycle), constituting the integral quality of the economic growth. However, the main subject and aim of this paper are not the sole issues absorbing the author. The question, in a sense, much more important, regarded as parallel, is to accentuate the common causes inducing financial crises ,which result from characteristic features of American financial markets and stock exchanges. Therefore, the author omitted certain financial crises, which appeared in the U.S. economy, and described those ones showing common points of contact with the contemporary mortgage credit crisis. As regards the format of this work, the form of a scientific magazine article appears to be the most appropriate and convincing.


Keywords


banking panics, banking system, central bank, financial crisis, financial stability

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Print ISSN: 1643-8175 (2451-0947), Online ISSN: 2451-0955, DOI prefix: 10.19197, Principal Contact: tbr@wsb.torun.pl