A Kind of Neither Keynesian Nor Neoclassical Model (7): The Cause of the Financial Crisis

摘要

There are two reasons for the financial crisis. One is the spontaneous specula-tion in the capital market. The P/E ratio of the speculative object is much high-er than the ratio of capital to output in the factual economic system. The other is the crisis triggered by the bubble environment. In addition, inflation has a strong inhibitory effect on asset bubbles, and high inflation and asset bubbles will not occur at the same t ime. These can be verified by statistical data and theoretical explanation from the marginal state equation of Cobb-Douglas function.