The ongoing global financial crisis, which was triggered by US subprime mortgage crisis since 2007 and has spread to some EU countries, is just a repeat of previous financial crises. The new financial crisis usually has wider, deeper and more devastating impacts on the economy and the people than those of previous ones. In the history of capitalism, there have actually been crises almost continuously for the past 200 years except for during one short period, 1945-1971, under Bretton Woods Agreement. Failing to learn the lessons from history will assure that the crises will continue to hobble the financial system. This study applies Vector Error Correction Model (VECM) to determine and compare quantitative variables of the financial crisis using conventional and Islamic variables, as well as to analyze the impact of the main determinants of financial crisis to output and inflation. The results show that the root causes of financial crisis are structural in unstable monetary system (inte
Year
2013
Country
Turkey
Language
English
Abstract
English
Select type of work
CIS Program Old
CIS publications
No
CIS Thesis
No