Government Policies and Financial Crises: Mitigation, Postponement or Prevention?

  title={Government Policies and Financial Crises: Mitigation, Postponement or Prevention?},
  author={Jakob Kapeller and Michael A. Landesmann and Fran Mohr and Bernhard Sch{\"u}tz},
  journal={Cambridge Journal of Economics},
Abstract In the aftermath of the Great Recession, governments have implemented several policy measures to counteract the collapse of the financial sector and the downswing of the real economy. Within a framework of Minsky-Veblen cycles, where relative consumption concerns, a debt-led growth regime and financial sector confidence constitute the main causes of economic fluctuations, we use computer simulations to assess the effectiveness of such measures. We find that the considered policy… 

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