An Empirical Study on the Monetary Causes in the 2008 Financial Crisis

Project: Research

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Analysis on the 2008 financial crisis has mixed monetary with financial issues. While discussion has concentrated on such financial fundamentals as market risk, regulatory framework, ibanks, and ethics, the solution to financial crisis could be related to monetary interaction between interest rate, inflation and exchange rate and other GDP components. Equally, there is a lack of study that examines how the performance of monetary variables could produce a crisis-prone result. An understanding on the performance of interest rate in business cycles and economic growth can provide new insights. This study uses monetary data of US to examine their performance leading up to the 2008 financial crisis. The empirical work will provide new arguments in monetary economics that take into account the occurrence of financial crisis.


Project number7008129
Grant typeSRG
Effective start/end date1/05/112/04/13