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For natural scientist each event is unique. In contrast economists maintain that there are some kind of "mathematical patterns" in the data and similar events are likely to induce similar responses.In another words, natural science is particular; but "economic science" is philosophical or general.
Hence, it is natural that modern economists already have some sort of "the models of financial crises " (Hyman Mensky,for instance )and government's enthusiasts today try to use some "rational plans"(like last USA and UK 's bailout plans) to stop panics and crashes .
Mathematically, however, market computed reality is very complex and, hence, government's simplifications are naive,actually.
I 'd like to express some arguments in defense of complexity of financial crises in the following form.
1. The Big Ten Financial Bubbles:
1.1 The Dutch Tulip Bubble 1636
1.2 The South Sea Bubble 1720
1.3 The Mississippi Bubble 1720
1.4 The late 1920s stock price bubble 1927-1929
1.5 The surge in bank loans to Mexico in 1970s
1.6 The bubble in real estate and stocks in Japan 1958-1989
1.7 The 1985-1989 bubble in real estate and stocks in Finland,Norway and Sweden
1.8 The bubble in real estate and stocks in Thailand, Malaysia,Indonesia 1992-1997
1.9 The surge in foreign investment in Mexico 1990-1993
1.10 The Super Bubble in real estate and stocks in the USA and Europe October 2008,
probably, may suggest that there are some sort of national differences in speculative temperament - investors in some countries are likely more to speculative than those in other countries.
2. "Currency school" and "banking school" in "monetary theory".
Rationalists -economists today have a kind of algebraic theory of money, associated with a debate between two different views- "the currency school of thinking" and "banking school of thinking ". The proponents of the currency school advocated a "mathematical fact" that a firm limit on the expansion of the money supply to avoid inflation, whereas banking's intellectuals believe that increases in the supply of money would not lead to inflation as long as that increases were associated with transactions. The debate between these two groups of "scientists" on managing the growth in the money supply after paradoxical Bailouts has continued now in USA and UK govenrments.As the result of such kind of "computations",democratically ellected institutions try to realize remarkable suicidal "solutions" - different nationalizations for different people.
3. Argument "when the rest of the world are mad, we must imitate them in some measure". Etc Etc Etc
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