Historical reflections on the causes of financial crises: Official investigations, past and present, 1873–2011

In the present essay we review a set of enquiries and reports that were realized and published as a result of the major financial crises of the past and of the contemporary era. Generally these documents not only address the issue of the causes of collapse of bank and capital markets but also shed light on regulations proposed at different points in time to improve financial stability. We begin with reference to extensive hearings published by the British Parliament following what may be termed the first global financial crisis in 1873 and, then, proceed to a discussion of official reports on the crises of 1907, 1929 and above all that of 2008, which has produced the greatest outpouring of these types of publications. It is our hypothesis that one important avenue for a historical understanding of the great financial debacles of the past consists in a careful evaluation of official literature and documents that can complement the theoretical approaches of economists in search of explanations for these events.