Authors: Victor Anderson
Addresses: Green Economics Institute, UK
Abstract: This article argues that the recent financial crisis was caused largely by the long-term problem of the current world economy lacking a sustainable path of development. Limits to growth – expressed principally through rises in the price of oil and other commodities – created a crisis for the global financial system, which has been based essentially on the assumption that economic growth will continue indefinitely. A mismatch was thereby created between the |real economy| and the finance sector.
Keywords: financial crisis; economic crisis; sustainability; commodities; economic growth; limits to growth; economic development; sustainable development; price rises; global financial system; real economy.
International Journal of Green Economics, 2009 Vol.3 No.1, pp.19 - 27
Published online: 17 Jun 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article