The Influence of Poor Government Control on the Financial Crisis

DOI

10.2991/assehr.k.220504.093How to use a DOI?

Keywords

financial crisis; government control; income inequality; financial innovations

Abstract

The financial crisis always makes detrimental impacts on a national economy or even global economy, and the causes of the financial crises are various. Moreover, most of the time there is not only one factor that will contribute to the occurrence of financial crises, usually there are combined factors. This paper aims to certify the poor government control will increase the risk of financial crises. By retrieving papers and data, the paper will deeply investigate why a poor government intervention will cause a financial crisis like the Great Depression, and the poor control will cause a combined factors they are income inequality, excessive financial innovations and low quality of financial reports. The paper finds that the poor government regulation will cause financial crisis. Under poor control, monopoly began to appear and create the income inequality, lead to a decreasing demand but an increasing supply which is the overproduction. Moreover, an insufficient control facilitates the mistreatment of financial innovations, with an accelerating usage, the risk of systemic crisis is also soaring because of the share of the risk.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

Download article (PDF)

TY  - CONF
AU  - Junjie Ran
PY  - 2022
DA  - 2022/06/01
TI  - The Influence of Poor Government Control on the Financial Crisis
BT  - Proceedings of the 2022 8th International Conference on Humanities and Social Science Research (ICHSSR 2022)
PB  - Atlantis Press
SP  - 513
EP  - 519
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220504.093
DO  - 10.2991/assehr.k.220504.093
ID  - Ran2022
ER  -