Evaluating Economic Crisis Theory: A Comprehensive Examination of the Aftalion Methodology
Journal Title: Journal of Corporate Governance, Insurance, and Risk Management - Year 2023, Vol 10, Issue 1
Abstract
The Aftalion methodology of economic crisis theory presents a complex and comprehensive understanding of economic crises, the exploration of which is riddled with nuanced considerations and varied perspectives. Primarily, it emphasizes the counterintuitive reality that the precursor to a crisis can be a period of prosperity, a concept that often remains overshadowed by a multitude of economic factors, including price evolutions and various defining economic junctures. Certain theories postulate that this initial phase of prosperity, paradoxically, sows the seeds for an impending crisis, a proposition that invites ample debate and necessitates further empirical validation. Theories focusing solely on the cost of production elements also come under scrutiny in the context of the Aftalion methodology. The theory recognizes the consequential roles of financial market fluctuations, particularly those pertaining to the stock market, alongside the influential forces of monetary and capitalist markets. Further, the state of employment significantly contributes to the shaping of economic conditions, underscoring the necessity of examining these factors in understanding crises. Finally, the methodology posits that variations in the discount rate could be pivotal triggers for economic crises, an assertion that calls for comprehensive investigation. The Aftalion methodology thus provides an exhaustive framework to examine economic crises, inviting scholars and practitioners alike to delve deeper into these mechanisms and their implications.
Authors and Affiliations
John A. Consiglio
Keywords
Related Articles
- EP ID EP732703
- DOI https://doi.org/10.56578/jcgirm100107
- Views 52
- Downloads 0
Dynamics of High-Tech Investment and Export Growth in Turkey: A Multidisciplinary Analysis
This investigation delves into the dynamics of Turkey’s high-technology investments and their influence on export expansion. In an evolving global economy, the pivotal role of high technology industries for sustained eco...
The Efficacy of Micro Life Insurance on Poverty Alleviation in India
This study delineates the current landscape and effectiveness of micro life insurance in India, with a particular focus on its utility for economically disadvantaged populations. Utilizing descriptive statistics, bar dia...
Comparative Evaluation of Statistical Models and Machine Learning Approaches in Modelling the Energy Dependency of the BIST Industrial Index: Balancing Predictive Performance and Interpretability
Energy dependency plays a pivotal role in shaping the performance of stock markets, particularly in energy-sensitive indices such as the BIST Industrial Index in Turkey. This study presents a comparative evaluation of tr...
Investor Overreaction in the BIST Sustainability Index: An Empirical Analysis from 2014-2022
Recent emphasis on environmental stewardship by stakeholders has escalated demands for disclosures on social and environmental impacts from environmentally detrimental companies, underscoring the significance of sustaina...
Assessing the Impact of Blockchain Technology on Internal Controls Within the COSO Framework
Developments in Blockchain technology and their increasing adoption have prompted examination of intersections with organizational internal control systems. Technological solutions leveraging blockchain reportedly enhanc...