KAPITALMARKT UND VOLKSWIRTSCHAFT

Capital market and national economy

Although supporters of the efficiency market hypothesis have many arguments against an active role of central banks in capital markets, the advantages of central banks, which care for the stability of the financial markets are crucial for a healthy development of capital- and credit markets and therefore essential for an economy.

The analysis carried out between 2000 and 2009 shows that an asset price bubble financed by credit has built. Each national citizen will feel the cost of this bursting bubble, which could have been avoided through active financial market politics.

Michael Tojner and Werner Krendl are publishing their series of articles with this new book. The articles from 2001, 2003 and 2009 are analyzing the events at the financial markets and identify relations between the capital market and the national economy.

The book is available in German free of cost here.