碩士 / 輔仁大學 / 金融與國際企業學系金融碩士在職專班 / 107 / This study explores the causes of the 2008 financial tsunami. This study discusses the causes of the 2008 financial tsunami according to Marx's capital theory. Based on the capital inherent contradictions and the defects of capital turnover, the financial collapse stems from the cyclic market crisis, built on market trading mechanism. In the study, the conditions in the period of 2008 is constructed through the capital circulation framework. It’s found that the price hikes of raw materials had caused the continuous decline of profit margin by 2008. Consequently, capital return became insufficient, further causing the withdrawal of other types of deposited currency (property). In a word, The capital circulation was offset by inflation, which resulted in the shrink of property market as well as credit market; eventually, the capital cycle was disrupted. the result supports the contradictory phenomenon of the capital market.
Before the financial tsunami, some traditional economists explained the causes of the financial crisis mainly because of insufficient liquidity, price rigidity, or the lack of traditional market mechanisms. the traditional economists are generally convinced that the 2008 financial tsunami resulted from the default of subprime mortgages. Accordingly, financial institutions sold off the pledges in the real estate market, which caused the great loss to financial institutions and the sharp decline in the price of mortgage backed security. The insufficient liquidity of financial institutions led to the credit market in a panic and the bankruptcy of financial institutions, resulting in a growth crisis to the overall market, following an extended period of proliferation. That is the major factor of the financial tsunami.
Based on the argument of capital theory, this study proposes the relationship between the average profit rate and the fluctuation of interest rate on the expansion and decline in the economy, and shows the inherent contradiction between the decline of profit rate and capital expansion, which forms a circular motion. First, when the profit rate rises to a relatively high point, the series of circular motion itself restricts the consumption power to a relatively low point. Furthermore, the supply and consumption power are re-balanced through the circular motion, which will inhibit the profit rate from rising and turning downwards, making the economy grow slower. Secondly, the interest rate is relative to capital turnover, investment, and personal consumption. For the individual, it is the credit cost for the early consumption and the overdraft for the future income; for the capital, it is the division of the profit rate, the profit division of the current capital turnover, and the obtainment of investing profits. The rise and fall of the interest rate is determined by the money supply and demand. In the study, the corporate bond interest rate is being observed. When the corporate bond interest rate rises, the demand for capital on the currency rises, which also represents the demand for turnover or investment, or the demand for debt payment. The rise and fall of the corporate bond interest rate is regarded as the capital dependent level on credit. The proportional relationship between the profit rate and the corporate bond interest rate can also be used as a way to observe whether the financial structure of the capital is sound or not.
When the average profit rate rises, it can be expressed as a smooth expansion of the capital circular motion, and the economy is in a rising stage; when the average profit rate declines, the corporate bond interest rate should decline so that the corresponding circular motion turns slow. After the profit margin began to decline in 2006, corporate bond interest rate fell in a short time, but in 2007, it rose in reverse. The rise in the interest rate does not correspond to the continuous decline in the profit rate, which means that the capital efficiency declines and the financial structure deteriorates. When the ratio of the corporate bond interest rate to the profit rate is more than one to two, the degree of capital circulation's fragility will lead to the outbreak of the financial crisis. The mutually-related changes in the average profit rate and interest rate become the focus of the financial crisis.
| Identifer | oai:union.ndltd.org:TW/106FJU01214021 |
| Date | January 2018 |
| Creators | WANG,SHAO-CHENG, 王劭丞 |
| Contributors | KAO,MING-SUNG, 高銘淞 |
| Source Sets | National Digital Library of Theses and Dissertations in Taiwan |
| Language | zh-TW |
| Detected Language | English |
| Type | 學位論文 ; thesis |
| Format | 56 |
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