Reasons of the Financial Crisis——Five Hypotheses in the Literature

The financial crisis originated in the U.S.sub-prime crisis has brought a rather large negative impact to the economies all over the world.As to the reasons for the financial crisis,scholars propose five types of hypothesis from economic,technical,political,ethical and multi-factor perspectives.Based on the economic perspective,there are viewpoints such as overproduction or of effective demand,imbalance of global economy,lack of government regulation,etc.;based on the technical perspective,there are hypotheses such as innovation of financial instruments,de-industrialization and lack of scientific and technological innovation,continuation of the internet bubble,etc.;the hypotheses from political perspective mainly stress basic contradiction of capitalism and political hegemony;the hypotheses based on ethics analyze the financial crisis from the angle of institutional ethics for financial system,commercial ethics,moral hazard,ethics of consumers,etc.;some scholars believe that the financial crisis is a result of multiple factors.