Finance as Perpetual Orgy How the ‘new alchemists’ twisted Kindleberger’s cycle of ‘manias, panics and crashes” into “manias, panics and renewed manias” José Gabriel Palma

This paper analyses how the traditional Kindlebergian financial-crisis cycle of “manias, panics and crashes” has been twisted so as to ensure that any panic is immediately followed by a renewed mania and as a by-product of this perpetual mania, emerging markets have become “the financial markets of last resort”, and commodities “the financial asset of last resort”.

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(This article was originally published on the website of University of Cambridge as Cambridge Working Papers in Economics)