Manias, Panics, and Crashes (eBook)

Robert Z. Aliber is Professor Emeritus of International Economics and Finance at the University of Chicago Booth School of Business, USA. He was director of the Center for Studies in International Finance; on the research staff for the Committee for Economic Development and Commission on Money and Credit; and senior economic advisor for the Agency for Economic Development, U.S. Department of State. Best-selling publications include The Reconstruction of International Monetary Arrangements (ed., Macmillan, 1986), The Handbook of International Financial Management (ed. Dow Jones Irwin, 1989), and Global Portfolios (co-editor, Business One Irwin, 1991). He is a co-author of Money, Banking, and the Economy (Norton, First Edition, 1981, Fourth Edition 1990), Manias, Panics, and Crashes: A History of Financial Crises (Palgrave MacMillan, 5th ed. 2005, 6th ed. 2011), and author of The International Money Game (Palgrave MacMillan, 2001).Aliber has consulted to the Board of Governors of the Federal Reserve System and to other U.S. government agencies, the World Bank and the International Monetary Fund, testified before committees of the Congress, and lectured extensively in the United States and abroad.The late Charles P. Kindleberger was the Ford Professor of Economics at MIT for 33 years and author of over 30 books. He was best known as a financial historian, whom the Economist referred to as 'the master of the genre' on financial crisis. He advanced the study of international finance and helped to devise the Marshall Plan, approved by Congress, for Europe's reconstruction after World War II. During his tenure at MIT, Kindleberger was a consultant to the federal government several times, most often for the Treasury and the Federal Reserve. In 1985, he was president of the American Economic Association. Select key publications by Kindleberger include: International Short-Term Capital Movements (Columbia University Press, 1937), The Dollar Shortage (New York: Wiley and MIT Press, 1950), International Economics (Richard D. Irwin, 1953, 1958, 1963, 1968, 1973, (and with Peter H. Lindert) 1978, 1982), Economic Development (McGraw-Hill, 1958, 1965, (and with Bruce Herrick) 1977, 1983), The World In Depression, 1929-1939 (University of California Press, 1973, revised and enlarged, 1986), and Manias, Panics, and Crashes: A History of Financial Crises (Palgrave Macmillan, 1978, revised and enlarged, 1989, 3rd ed. 1996, 4th ed. 1996), The Life of an Economist: An Autobiography (Basil Blackwell, 1991).

Cover 1
Half Title 2
Title 3
Copyright 4
Contents 5
List of Tables 6
Foreword 7
Introduction 10
1 Financial Crises: a Hardy Perennial 14
2 The Anatomy of a Typical Crisis 47
3 Speculative Manias 62
4 Fueling the Flames: the Expansion of Credit 87
5 The Critical Stage - When the Bubble Is About To Pop 113
6 Euphoria and Paper Wealth 141
7 Bernie Madoff: Frauds, Swindles, and the Credit Cycle 152
8 International Contagion 1618-1930 192
9 Bubble Contagion: Mexico City to Tokyo to Bangkok to New York, London, and Reykjavik 209
10 Euromania and Eurocrash 233
11 Policy Responses: Benign Neglect, Exhortation, and Bank Holidays 244
12 The Domestic Lender of Last Resort 269
13 The International Lender of Last Resort 288
14 The Lehman Panic - An Avoidable Crash 322
15 The Lessons of History 349
Epilogue 378
Notes 388
Afterword 413
Index 416