Özet:

The paper provides a critical review of the explanations of the crisis’s history. It also contributes to the literature by analyzing the link between asymmetric information and crises in general. Specifically, it is argued that asymmetric information played a leading role in all crises by causing speculation and deterioration in price mechanism. Paper shows that historically, economic crises are seen with sufficient asymmetric information and speculation within. Paper argues that asymmetric information cause speculation or lack of confidence and panic respectively. Moreover, paper argues that bubbles are strongly correlated with asymmetric information as well. The first part of the paper makes an insight of neoclassical economics and crises in general. The perception behind neclassical economics and its defects are reviewed with respect to crises in history. Afterward the economic transition mechanism and the spread of an economic crisis and bubbles analyzed. Lastly, from Tulipmania to global financial crisis, the mechanism of a crisis and the significant crises in history analyzed respectively. The conclusion and approach of the paper provides an insight to asymmetric information and economic crises in economic history.

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