A Systems Story of the Great Global RecessionBy
- Karen Higgins, Adjunct Professor, Peter F. Drucker and Masatoshi Ito Graduate School of Management, Claremont Graduate University, CA, USA
How do economists reconcile their expertise with their failures to predict and manage the 2008 financial crisis? This book goes a long way toward an answer by using systems theory to reveal the complex interdependence of factors and forces behind the crisis. In her fully integrated view of the economy, how it works, and how the economic crisis burst, Karen Higgins combines human psychology, cultural values, and belief formation with descriptions of the ways banks and markets succeed and fail. In each chapter she introduces themes from financial crisis literature and brings a systems-theory treatment of them. Her methodology and visual presentations both develop the tools of systems theory and apply these tools to the financial crisis. Not just another volume about the crisis, this book challenges the status quo through its unique multidisciplinary approach.
Primary: upper-division undergraduates and graduate students worldwide studying the 2008 financial crisis and financial crises in general.
Paperback, 400 Pages
Published: April 2013
Imprint: Academic Press
"This book delivers revealing insights about how systems theory can inform the way we think about financial systems. It has the power to change the way we think about economic crises." --Luke Houghton, Griffith University, Australia"
Financial Whirlpoolsinsists that the economy must be studied as a complex whole that is capable of producing unexpected results and brings these insights to bear on the financial sector. The book is a welcome departure from the individualistic and mechanistic thinking that blinded a profession to the possibility of the recent financial crisis." --Mark Setterfield, Trinity College, US
PART I FOUNDATIONS
1. LINES OR CIRCLES: The Basics of Systems Thinking
2. AS THE GEARS TURN: Policies, Practices, Markets, and Risk
PART II YIN: HUMAN BEHAVIORS3. WHERE CAN I BUY ONE? Humans and the economy
4. WHO ARE YOU ANYWAY? Values, beliefs, and behaviors5. VISIONS OF GRANDEUR: Expectations and behaviors
6. A CRISIS OF HUMAN PROPORTIONS: Ethics and behaviors7. SELF SPEAKS LOUDLY AND CARRIES A BIG STICK: Sources of unethical behavior
PART III YANG: ECONOMIC MECHANICS8. WHAT GOES UP MUST COME DOWN: The Housing Bubble
9. ON TOP OF DEBT MOUNTAIN: High Risk Loans and Credit10. THE RISK TIGER POUNCES: Financial Market, Risk, and Securitization
PART IV YIN AND YANG: INTEGRATION
11. HUMAN ROOTS ARE DEEP: Yin meets Yang12. CONCLUSIONSAppendix A