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Definition of 'Financial Accelerator'
A financial theory that states that a small change in financial markets can produce a large change in economic conditions and create a feedback loop. The theory is attributed to Federal Reserve Board Chairman Ben Bernanke and fellow economists Mark Gertler and Simon Gilchrist. Bernanke’s belief in the financial accelerator may account for some of his policy decisions, such as cutting interest rates in the wake of the credit crisis of 2008-2010.
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Investopedia explains 'Financial Accelerator'
The financial accelerator idea may help to clarify the causes of both the booms and busts of the business cycle. For example, Bernanke and Gertler have written that the financial accelerator may explain why the Great Depression was so severe. It may also shed light on the subprime mortgage crisis.
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Search results for 'Financial Accelerator'
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http://financialedge.investopedia.com/financial-edge/0210/Water-Cooler-News-Financial-News-This-Week.aspx
... Toyota's failure to catch the accelerator flaws in the production stage along with
the ... Bells and Baby Bills in the buzzwords section of the financial lexicon. ...
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http://financialedge.investopedia.com/financial-edge/0310/Water-Cooler-Finance-Bailouts-Buffett-Rock-And-Prison-Brawls.aspx
... largest economy, turned up its nose at providing direct financial aid, Greece ... car's
computer, which indicated that both the brakes and accelerator were being ...
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http://stocks.investopedia.com/stock-analysis/2010/Toyotas-Serial-Troubles-TM-F-HMC-NSANY-TSLA0709.aspx
... When the sticking accelerator issue first surfaced with Toyota, there was ... still follows
the markets, studies and reads widely in financial literature, and has ...
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http://stocks.investopedia.com/stock-analysis/moneyshow/3RecentIPOsPoisedforNextMarketUptrend.aspx
... Its not a time to be in the storm cellar, but we also dont think its time to put
the accelerator to the ground either. ... Trading Center. New! The Financial ...
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