Submitted in partial fulfilment of the requirements for degree Master of
Management in Finance and Investments in Wits Business School of the
University of the Witwatersrand / This research paper examines an economy with debt and discusses the
mechanism through which a financial crisis may arise, taking into account the
business cycle theories as advocated by amongst others; Karl Marx, Friederich
Hayek, and John Keynes. It is found that there are various channels through
which financial crises may arise. Secondly, this research paper investigates the
mechanism through which bank credit propagates and prolongs the business
cycle. The analysis of the data reveals that post the crisis, recoveries are slower
in developed nations versus developing nations and that the deeper the
recession, the longer it takes for a country to recover. Thirdly, this research
paper determines the critical debt level at which economies will start to recover,
following a period of economic fragility. Finally, recommendations which could
contribute towards the mitigation of causes and/or effects of economic crisis
are made.
Key words: Bank Credit, Business Cycle / GR2018
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/23789 |
| Date | January 2016 |
| Creators | Molabe, Kgabo Mapitsi |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | Online resource (ix, 77 leaves), application/pdf |
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