Economic and Financial Crises in Catalonia (1840–1914)

• Autores: Pere Pascual i Domènech
• Localización: Crises and transformation in the Mediterranean world: lessons from Catalonia / Jordi Catalán Vidal (ed. lit.), 2023, ISBN 978-3-031-24504-6, págs. 225-268
• Idioma: inglés
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• Resumen

  • Financial crises are caused by a growing divergence between the behaviour of basic economic variables and the expectations of investors and consumers. The aforementioned variables consist of the size of savings and the volume of demand driven by the changes experienced in prices, salaries and the interest rate. This divergence gives rise to an overinvestment in a certain asset—often related to innovation, as was, in the past, the case of railways—, fed by the expansion of credit and which, in the end, does not offer the expected performance for investors.