Economists who believe that market economies are inherently unstable argue that the crisis of 2008 was primarily the result of

Question

Quizplus · Accepted Answer

Economists who believe in the instability of market economies argue that the crisis of 2008 was primarily caused by the leveraged lending practices of banks and the fear that retarded both consumption and investment in the latter half of 2008. The easy availability of credit and subprime lending practices also contributed to the crisis, ultimately leading to the collapse of the housing market and financial institutions. Factors such as Fed policies, housing regulations, and persistently high interest rates may have played a role, but they are not considered the primary cause by economists who believe in the inherent instability of market economies.

Economists Who Believe That Market Economies Are Inherently Unstable Argue