Economic crises are a result of policy failures from "summary" of 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang
Economic crises do not occur out of the blue. They are not acts of God. They are man-made disasters, resulting from policy failures. These failures can take many forms. They can be the result of governments not regulating the financial system properly, allowing banks to take excessive risks. They can be the result of governments pursuing fiscal policies that are too tight, leading to a lack of demand in the economy. Policy failures can also stem from governments not investing enough in infrastructure, education, and research and development. They can come from governments pursuing trade policies that are too open, leading to an overreliance on exports and vulnerability to external shocks. Policy failures can even come from governments not doing enough to address rising inequality, which can lead to social unrest and political instability, both of which can have economic consequences. In short, economic crises are not inevitable. They are the result of ...
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