Global Financial Meltdown – Systematic Literature Review A Qualitative Research Study
DOI:
https://doi.org/10.31384/jisrmsse/2019.17.1.12Keywords:
Financial Crisis, Financial Derivatives, Global Financial Meltdown, Securitization Subprime, MortgageAbstract
Global Financial Meltdown was a major economic crisis in the recent past. It had devastating effects throughout the world. A clear understanding of the global financial meltdown is very necessary as it raised lots of concerns on the contemporary financial system. The complexity of this crisis event demands a detailed descriptive analysis for its understanding, which cannot be captured through a mere quantitative study. We have to see this economic crisis from various perspectives and angles, for which systematic literature review approach is used in this study and the global financial crisis is taken as an intrinsic case. Taking different perspectives of various researchers, thinkers and intelligentsia will also help in driving out an unbiased and factual view of these crises.The financial meltdown started from subprime crises. Financial derivatives and securitization were the main elements of the subprime mortgage. Financial derivatives are innovative financial products, whereas securitization is the process of converting mortgage loans into tradable securities. The unprecedented volume of derivatives trade and multiple cycles of securitization within a short span of time caused subprime crises in the USA. Since lots of financial institutions from various parts of the world have stakes in subprime mortgages, therefore resonance of subprime crises traveled across the globe. The shrinkage of profits forced financial institutions for rapid divestitures of investment from stock markets, which caused a dramatic drop in indices. This scenario destabilized numerous companies and dire effects of financial sector spilled over to other economic sectors in the various economies of the world.
Downloads
References
Antonopoulou, S. N. (2010). The Global Financial Crisis. The International Journal of Inclusive Democracy, 5 (4).
Ashcraft, A. B. & Schuermann, T. (2007). Understanding The Securitization Of Subprime Mortgage Credit.
Baxter, P., & Jack, S. (2008). Qualitative case study methodology: Study design and implementation for novice researchers. The qualitative report, 13(4), 544-559.
Blackburn, R. (2006). Finance and the fourth dimension. New Left Review, 39.
Camilleri, S. J. (2003). Globalization Of International Financial Markets. Banking And Finance Department, Fema, University Of Malta.
Cooper, R., Chenail, R. J., & Fleming, S. (2012). A Grounded Theory of Inductive Qualitative Research Education: Results of a Meta- Data-Analysis.The Qualitative Report, 17(52), 1-26. Retrieved from http://nsuworks.nova.edu/tqr/vol17/iss52/3
Creswell, J. (1998). Research design: Qualitative, quantitative, and mixed methods approach (2nd ed.).
Datta, D. & Mukherjee, (2008). A. ‘Subprime’ Crisis And Global Macroeconomic Imbalance.
Dowd, K. 2009. Moral Hazard And The Financial Crisis. Cato Journal, 29, 141-166.
Elizalde, A. & Gallo, A. (2008). Understanding Credit Derivatives. Banco De España, Revista De Estabilidad Financiera, Mayo.
Forster, M. N. (n.d.). Hermeneutics. Google Scholar. Accessed on: 9-04-2016
Gerding, E. F. (2009). Code, crash, and open source: The outsourcing of financial regulation to risk models and the global financial crisis. Wash. L. Rev., 84, 127.
Griffith-Jones, S. (2009). How To Create Better Financial Regulation & Institutions. Friedrich Ebert Stiftung Briefing Paper, 2.
Ghysels, E. & Seon, J. 2005. The Asian financial crisis: the role of derivative securities trading and foreign investors in Korea. Journal of International Money and Finance, 24, 607-630.
Haldane, A. G. (2009). Rethinking The Financial Network. Speech Delivered At The Financial Student Association, Amsterdam, April.
Henke, S., Burghof, H. P. & Rudolph, B. (1998). Credit Securitization And Credit Derivatives: Financial Instruments And The Credit Risk Management Of Middle Market Commercial Loan Portfolios. Ludwig-Maximilians University, Munich, Cfs Working Paper.
Jones, L. & Consult, B. (2009). Current Issues Affecting The Otc Derivatives Market And Its Importance To London.
Leathers, C. G. & Raines, J. P. 2004. The Schumpeterian role of financial innovations in the New Economy’s business cycle. Cambridge Journal of Economics, 28, 667-681.
Leijonhufvud, A. (2009). Out Of The Corridor: Keynes And The Crisis. Cambridge Journal Of Economics, 33, 741-757.
Littell, J. H., Corcoran, J., & Pillai, V. (2008). Systematic reviews and meta-analysis. New York, NY: Oxford University Press.
Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook (2nd ed.).
Murdock, C. W. (2010). Summary: The Financial Reform Act: Will It Succeed In Reversing The Causes Of The Subprime Crisis And Prevent Future Crises? Loyola University Chicago School Of Law, Public Law & Legal Theory Research Paper No. 2010-010.
Okina, K., Shirakawa, M. & Shiratsuka, S. 2001. The asset price bubble and monetary policy: Japan’s experience in the late 1980s and the lessons. Monetary and Economic Studies (Special Edition), 19, 395-450.
Pettigrew, M., & Egan, M. (2006). Relevance rigor and systematic reviews. Moving beyond effectiveness in evidence synthesis. London: National Institute for Health and Clinical Excellence.
Radelet, S. & Sachs, J. 1999. What have we learned, so far, from the Asian financial crisis? Harvard Institute for International Development, mimeo.
Stake, R. E. (1995). The art of case study research. New York, NY: Guilford.
Todt, H. 2009. Some aspects of the economic crisis. Economic Amphitheatre–Economic Policy in the Wake of the Crises, 667-670.
Tonkiss, F. (2009). Trust, Confidence And Economic Crisis. Intereconomics, 44, 196-202.
Tweedie, D. (2008). Bringing Transparency To Financial Reporting: Towards An Improved Accounting Framework In The Aftermath Of The Credit Crisis. For Financial, 115.
Wei, S.-J., & Kim, W. (1999). Offshore Investment Funds. East Asian Economic Review, 3(4), 3-33.
Williams, O. M. (2009). Systemic Risk: Regulatory Oversight And Recent Initiatives To Address Risk Posed By Credit Default Swaps: Congressional Testimony, DianePublishing.
Yin, R. K. (2003). Case study research: Design and methods (3rd ed.).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2019 Author
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright: The Authors
