Instability and crises in financial markets: a study of different theoretical frameworks

Abstract

The main objective of this paper is to present, from different theoretical frameworks, some characteristics of the financial markets that contribute to construct a instable and susceptible to crises environment. Between these characteristics we will discuss: the transformation function; the asymmetric information and the credit rationing presented by the new keynesians; the uncertainty as treated by Keynes and the post keynesians; and the systemic risk discussed by Aglietta.