Booms and Busts: An Encyclopedia of Economic History from the First Stock Market Crash of 1792 to the Current Global Economic Crisis

1007 Pages·2010·12.35 MB·English

by  Mehmet Odekon

Booms
Bus Ts
d
n
a
an Encyclopedia of Economic History
from Tulipmania of the 1630s to the
Global Financial Crisis of the 21st Century
James Ciment, Editor
SHARPE REFERENCE
Sharpe Reference is an imprint of M.E. Sharpe, Inc.

M.E. Sharpe, Inc.
80 Business Park Drive
Armonk, NY 10504
© 2013 by M.E. Sharpe, Inc.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior permission of the copyright holders.
Cover photos (background; left to right) provided by Getty Images and the following:
Mario Tama; Popperfoto; Yoshikazu Tsuno/AFP; Kean Collection/Hulton Archive; Melanie Einzig.
Library of Congress Cataloging-in-Publication Data
Booms and busts : an encyclopedia of economic history from Tulipmania of the 1630s to the
global financial crisis of the 21st century / James Ciment, editor.
v. ; cm.
Includes bibliographical references and index.
ISBN 978-0-7656-8224-6 (hardcover : alk. paper)
1. Financial crises—Encyclopedias. 2. Finance—Encyclopedias. I. Ciment, James.
HB3722.B67 2010
330.03—dc22 2010021272
Printed and bound in the United States
The paper used in this publication meets the minimum requirements of
American National Standard for Information Sciences—Permanence of
Paper for Printed Library Materials,
ANSI Z 39.48.1984.
CW (c) 10 9 8 7 6 5 4 3 2 1
Publisher: Myron E. Sharpe
Vice President and Director of New Product Development: Donna Sanzone
Vice President and Production Director: Carmen Chetti
Executive Development Editor: Jeff Hacker
Project Manager: Angela Piliouras
Program Coordinator: Cathleen Prisco
Assistant Editor: Alison Morretta
Text Design and Cover Design: Jesse Sanchez
Typesetter: Nancy Connick
BOOMS AND BUSTS
Table of Contents
Introduction
A-Z Entries
Africa, Sub-Saharan
Agriculture
AIG
Airline Industry
Akerman, Johan Henryk (1896–1982)
Argentina
Asian Financial Crisis (1997)
Asset-Price Bubble
Australia
Austrian School
Automated Trading Systems
Babson, Roger (1875–1967)
Balance of Payments
Baltic Tigers
Bank Cycles
Bank of America
Banking School/Currency School Debate
Banks, Central
Banks, Commercial
Banks, Investment
Bauer, Otto (1881–1938)
Bear Stearns
Behavioral Economics
Belgium
Bernanke, Ben (1953–)
Bethlehem Steel
Böhm-Bawerk, Eugen Ritter von (1851–1914)
Boom, Economic (1920s)
Boom, Economic (1960s)
Booms and Busts: Cause and Consequences
Booms and Busts: Pre–Twentieth Century
Booms and Busts: Twentieth and Twenty-First Centuries
Brazil
BRIC (Brazil, Russia, India, China)
Brunner, Karl (1916–1989)
Bullock, Charles (1869–1941)
Burchardt, Fritz (1902–1958)
Burns, Arthur (1904–1987)
Business Cycles, International
Canada
Capital Account
Capital Market
Capital One
Catastrophe Theory
Central America
Chile
China
Chrysler
Circuit City Stores
Citigroup
Classical Theories and Models
Collateral
Collateralized Debt Obligations
Collateralized Mortgage Obligations
Colombia
Commodity Markets
Community Reinvestment Act (1977)
Confidence, Consumer and Business
Congressional Budget Office
Construction, Housing and Commercial
Consumer and Investor Protection
Consumption
Corporate Corruption
Corporate Finance
Council of Economic Advisers, U.S.
Countrywide Financial
Creative Destruction
Credit Cycle
Credit Default Swaps
Credit Rating Agencies
Current Account
Debt
Debt Instruments
Deflation
Demographic Cycle
Denmark
Depository Institutions
Dot.com Bubble (1990s–2000)
Dow Jones Industrial Average
Duesenberry, James (1918–2009)
Eastern Europe
Echo Bubble
Eckstein, Otto (1927–1984)
Effective Demand
Efficient Market Theory
Emerging Markets
Employment and Unemployment
Endogenous Growth Models
Enron
European Central Bank
Exchange Rates
Fannie Mae and Freddie Mac
Federal Deposit Insurance Corporation
Federal Housing Administration
Federal Housing Enterprise Oversight, Office of
Federal Reserve System
Fellner, William John (1905–1983)
Financial Development/Deepening
Financial Markets
Financial Modeling of the Business Cycle
Finland
Fiscal Balance
Fiscal Policy
Fisher, Irving (1867–1947)
Fisher’s Debt-Deflation Theory
Fixed Business Investment
Fleetwood Enterprises
Florida Real-Estate Boom (1920s)
Foreclosure
Fragility, Financial
France
Friction, Financial
Friedman, Milton (1912–2006)
Frisch, Ragnar (1895–1973)
Galbraith, John Kenneth (1908–2006)
Geithner, Timothy (1961–)
General Motors
German Historical School
Germany
Glass-Steagall Act (1933)
Goldman Sachs
Goodwin, Richard Murphy (1913–1996)
Government Accountability Office
Great Depression (1929–1933)
Greece
Greenspan, Alan (1926–)
Gross Domestic Product
Growth Cycles
Growth, Economic
Haberler, Gottfried von (1900–1995)
Hansen, Alvin Harvey (1887–1975)
Harrod, Roy Forbes (1900–1978)
Hawtrey, Ralph George (1879–1975)
Hayek, Friedrich August von (1899–1992)
Hedge Funds
Hicks, John Richard (1904–1989)
Hoarding
House Financial Services Committee
Housing
Housing and Urban Development, Department of
Housing Booms and Busts
Iceland
Immigration and Migration
Income Distribution
India
Indicators of Financial Vulnerability
Indonesia
Industrial Policy
IndyMac Bancorp
Inflation
Information Technology
Innovation, Financial
Institutional Economics
Insull, Samuel (1859–1938)
Integration, Financial
Interest Rates
Intermediation, Financial
International Development Banks
International Economic Agreements
International Monetary Fund
International Monetary Fund Mortgage Market Index
International Policy Coordination
Inventory Investment
Investment, Financial
Ireland
“Irrational Exuberance”
Israel
Italy
Japan
Jevons, William Stanley (1835–1882)
JPMorgan Chase
Juglar, Clément (1819–1905)
Kaldor, Nicholas (1908–1986)
Kalecki, Michal (1899–1970)
Kautsky, Karl (1854–1938)
Keynes, John Maynard (1883–1946)
Keynesian Business Model
Kindleberger, Charles P. (1910–2003)
Kondratieff Cycles
Kondratieff, Nikolai Dmitriyevich (1892–1938)
Koopmans, Tjalling Charles (1910–1985)
Korea, South
Kuznets, Simon Smith (1901–1985)
Labor Market
Lachmann, Ludwig Maurits (1906–1990)
Lange, Oskar R. (1904–1965)
Latin America
Law, John (1671–1729)
Leads and Lags
Lehman Brothers
Lerner, Abba P. (1903–1982)
Leveraging and Deleveraging, Financial
Liberalization, Financial
Life Insurance
Linens’n Things
Liquidity Crunch
Liquidity Trap
Loan-to-Value Ratio
Long-Term Capital Management
Lowe, Adolph (1893–1995)
Loyd, Samuel Jones (1796–1883)
Luminent Mortgage Capital
Lundberg, Erik Filip (1907–1987)
Luxemburg, Rosa (1871–1919)
Madoff, Bernard (1938–)
Malthus, Thomas Robert (1766–1834)
Manufacturing
Market Trends
Marshall, Alfred (1842–1924)
Marx, Karl (1818–1883)
Marxist Cycle Model
Merrill Lynch
Metzler, Lloyd Appleton (1913–1980)
Mexico
Middle East and North Africa
Mill, John Stuart (1806–1873)
Mills, Frederick Cecil (1892–1964)
Minsky, Hyman (1919–1996)
Minsky’s Financial Instability Hypothesis
Mises, Ludwig von (1881–1973)
Mississippi Bubble (1717–1720)
Mitchell, Wesley Clair (1874–1948)
Monetary Policy
Monetary Stability
Monetary Theories and Models
Money Markets
Money, Neutrality of
Money Store, The
Moral Hazard
Morgan Stanley
Morgenstern, Oskar (1902–1977)
Mortgage-Backed Securities
Mortgage, Commercial/Industrial
Mortgage Equity
Mortgage Lending Standards
Mortgage Markets and Mortgage Rates
Mortgage, Reverse
Mortgage, Subprime
Myrdal, Gunnar (1898–1987)
Nasdaq
National Bureau of Economic Research
National Economic Council
Neoclassical Theories and Models
Neo-Keynesian Theories and Models
Netherlands, The
New Deal
New York Stock Exchange
New Zealand
Northern Rock
Norway
Oil Industry
Oil Shocks (1973–1974, 1979–1980)
Over-Savings and Over-Investment Theories of the Business Cycle
Overvaluation
Pacific Rim
Panic of 1901
Panic of 1907
Panics and Runs, Bank
Paulson, Henry (1946–)
Penn Central
Philippines
PNC Financial Services
Political Theories and Models
Ponzi Scheme (1919–1920)
Portugal
Poseidon Bubble (1969–1970)
Post Keynesian Theories and Models
Poverty
Price Stability
Production Cycles
Productivity
Profit
Public Works Policy
Real Business Cycle Models
Real-Estate Speculation
Recession and Financial Crisis (2007–2009)
Recession, Reagan (1981–1982)
Recession, Roosevelt (1937–1939)
Recession, Stagflation (1970s)
Refinancing
Regulation, Financial
Resource Allocation
Retail and Wholesale Trade
Retirement Instruments
Risk and Uncertainty
Robbins, Lionel Charles (1898–1984)
Robertson, Dennis Holme (1890–1963)
Robinson, Joan (1903–1983)
Romer, Christina (1958–)
Röpke, Wilhelm (1899–1966)
Rostow, Walt Whitman (1916–2003)
Rubin, Robert (1938–)
Russia and the Soviet Union
S&P 500
Samuelson, Paul (1915–2009)
Savings and Investment
Savings and Loan Crises (1980s–1990s)
Schumpeter, Joseph (1883–1950)
Schwartz, Anna (1915–)
Seasonal Cycles
Securities and Exchange Commission
Securitization
Shackle, George (1903–1992)
Shadow Banking System
Shock-Based Theories
Slow-Growth Recovery
Smith, Adam (1723–1790)
Souk al-Manakh (Kuwait) Stock Market Crash (1982)
South Africa
South Sea Bubble (1720)
Southeast Asia
Spain
Spiethoff, Arthur (1873–1957)
Spillover Effect
Sprague, Oliver (1873–1953)
Sraffa, Piero (1898–1983)
Stability and Stabilization, Economic
Steindl, Josef (1912–1993)
Stimulus Package, U.S. (2008)
Stimulus Package, U.S. (2009)
Stochastic Models
Stock and Bond Capitalization
Stock Market Crash (1929)
Stock Market Crash (1987)
Stock Markets, Global
Stockholm School
Subsidies