Post Tagged with: "risk"

BSG Alumni, Economic growth and resilience

Why are financial systems prone to crisis?

Why are financial systems prone to crisis?

At the peak of the Netherlands’ “tulip mania” in 1637, one tulip bulb sold for 5,500 guilders per bulb—roughly the cost of luxurious house in Amsterdam, or $25,000 today. More than three and a half centuries later, economists continue to debate why tulip prices skyrocketed to stratospheric levels in the 1630s, much in the same way that the 2008 Global Financial Crisis remains a source of contention. Why have financial systems been so vulnerable to crises, and what role has regulation played?

by × 10 June 2014 ×