What Caused The Global Financial Crisis

Author : Erlend Nier,Ouarda Merrouche
Publisher : International Monetary Fund
Page : 64 pages
File Size : 52,8 Mb
Release : 2010-11-01
Category : Business & Economics
ISBN : 9781455210725

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What Caused the Global Financial Crisis by Erlend Nier,Ouarda Merrouche Pdf

This paper investigates empirically the drivers of financial imbalances ahead of the global financial crisis. Three factors may have contributed to the build-up of financial imbalances: (i) rising global imbalances (capital flows), (ii) monetary policy that might have been too loose, (iii) inadequate supervision and regulation. Panel data regressions are performed for OECD countries from 1999 to 2007, so as to shed light on the relative importance of these factors, as well as the extent to which these factors might have interacted in fuelling the build-up. We find that the build-up of financial imbalances was driven by capital inflows and an associated compression of the spread between long and short rates. The effect of capital inflows on the build-up is amplified where the supervisory and regulatory environment was relatively weak. We find that, by contrast, differences in monetary policy cannot account for differences across countries in the build-up of financial imbalances ahead of the crisis.

Author : Jeffrey Friedman
Publisher : University of Pennsylvania Press
Page : 372 pages
File Size : 50,6 Mb
Release : 2011-06-06
Category : Business & Economics
ISBN : 9780812204933

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What Caused the Financial Crisis by Jeffrey Friedman Pdf

The deflation of the subprime mortgage bubble in 2006-7 is widely agreed to have been the immediate cause of the collapse of the financial sector in 2008. Consequently, one might think that uncovering the origins of subprime lending would make the root causes of the crisis obvious. That is essentially where public debate about the causes of the crisis began—and ended—in the month following the bankruptcy of Lehman Brothers and the 502-point fall in the Dow Jones Industrial Average in mid-September 2008. However, the subprime housing bubble is just one piece of the puzzle. Asset bubbles inflate and burst frequently, but severe worldwide recessions are rare. What was different this time? In What Caused the Financial Crisis leading economists and scholars delve into the major causes of the worst financial collapse since the Great Depression and, together, present a comprehensive picture of the factors that led to it. One essay examines the role of government regulation in expanding home ownership through mortgage subsidies for impoverished borrowers, encouraging the subprime housing bubble. Another explores how banks were able to securitize mortgages by manipulating criteria used for bond ratings. How this led to inaccurate risk assessments that could not be covered by sufficient capital reserves mandated under the Basel accords is made clear in a third essay. Other essays identify monetary policy in the United States and Europe, corporate pay structures, credit-default swaps, banks' leverage, and financial deregulation as possible causes of the crisis. With contributions from Richard A. Posner, Vernon L. Smith, Joseph E. Stiglitz, and John B. Taylor, among others, What Caused the Financial Crisis provides a cogent, comprehensive, and credible explanation of why the crisis happened. It will be an essential resource for scholars and students of finance, economics, history, law, political science, and sociology, as well as others interested in the financial crisis and the nature of modern capitalism and regulation.

Author : John Bellamy Foster,Fred Magdoff
Publisher : NYU Press
Page : 162 pages
File Size : 54,7 Mb
Release : 2009-01-01
Category : Business & Economics
ISBN : 9781583673683

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The Great Financial Crisis by John Bellamy Foster,Fred Magdoff Pdf

In the fall of 2008, the United States was plunged into a financial crisis more severe than any since the Great Depression. As banks collapsed and the state scrambled to organize one of the largest transfers of wealth in history, many—including economists and financial experts—were shocked by the speed at which events unfolded. In this new book, John Bellamy Foster and Fred Magdoff offer a bold analysis of the financial meltdown, how it developed, and the implications for the future. They examine the specifics of the housing bubble and the credit crunch as well as situate current events within a broader crisis of monopoly-finance capitalism—one that has been gestating for several decades. It is the "real" productive economy’s tendency toward stagnation, they argue, that creates a need for capital to find ways to profitably invest its surplus. But rather than invest in socially useful projects that would benefit the vast majority, capital has constructed a financialized "casino" economy that neglects social needs and, as has become increasingly clear, is fatally unstable. Written over a two-year period immediately prior to the onset of the crisis, this timely and illuminating book is necessary reading for all those who wish to understand the current situation, how we got here, and where we are heading.

Author : Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 670 pages
File Size : 42,8 Mb
Release : 2014-02-19
Category : Business & Economics
ISBN : 9781475543407

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Financial Crises by Mr.Stijn Claessens,Mr.Ayhan Kose,Mr.Luc Laeven,Mr.Fabian Valencia Pdf

The lingering effects of the economic crisis are still visible—this shows a clear need to improve our understanding of financial crises. This book surveys a wide range of crises, including banking, balance of payments, and sovereign debt crises. It begins with an overview of the various types of crises and introduces a comprehensive database of crises. Broad lessons on crisis prevention and management, as well as the short-term economic effects of crises, recessions, and recoveries, are discussed.

Author : Noah Berlatsky
Publisher : Greenhaven Publishing LLC
Page : 264 pages
File Size : 50,9 Mb
Release : 2010-01-15
Category : Young Adult Nonfiction
ISBN : 9780737751161

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The Global Financial Crisis by Noah Berlatsky Pdf

This book explores possible causes of the global economic crisis, including lack of banking regulation, greed of financial institutions, decisions of the Federal Reserve, and the abandonment of the gold standard. Examines the differing impacts of the crisis on wealthy nations and developing nations, and why some nations are weathering the crisis better than others. Discusses potential solutions to the crisis, such as regulatory reform and lowering restrictions on trade.

Author : A. G. Malliaris,Leslie Shaw,Hersh Shefrin
Publisher : Oxford University Press
Page : 521 pages
File Size : 51,7 Mb
Release : 2016
Category : Business & Economics
ISBN : 9780199386222

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The Global Financial Crisis and Its Aftermath by A. G. Malliaris,Leslie Shaw,Hersh Shefrin Pdf

... Expert contributors argue that the complexity of the Global Financial Crisis challenges researchers to offer more comprehensive explanations by extending the scope and range of their traditional investigations. To achieve this, the volume views the financial crisis simultaneously through three different lenses--economic, psychological, and social values ... They recognize how current economic analysis did not prepare academic economists, business economists, traders, and regulators to anticipate economic and financial crises ...

Author : Peter J. Wallison
Publisher : Encounter Books
Page : 432 pages
File Size : 55,5 Mb
Release : 2016-03-29
Category : Business & Economics
ISBN : 9781594038662

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Hidden in Plain Sight by Peter J. Wallison Pdf

The 2008 financial crisis—like the Great Depression—was a world-historical event. What caused it will be debated for years, if not generations. The conventional narrative is that the financial crisis was caused by Wall Street greed and insufficient regulation of the financial system. That narrative produced the Dodd-Frank Act, the most comprehensive financial-system regulation since the New Deal. There is evidence, however, that the Dodd-Frank Act has slowed the recovery from the recession. If insufficient regulation caused the financial crisis, then the Dodd-Frank Act will never be modified or repealed; proponents will argue that doing so will cause another crisis. A competing narrative about what caused the financial crisis has received little attention. This view, which is accepted by almost all Republicans in Congress and most conservatives, contends that the crisis was caused by government housing policies. This book extensively documents this view. For example, it shows that in June 2008, before the crisis, 58 percent of all US mortgages were subprime or other low-quality mortgages. Of these, 76 percent were on the books of government agencies such as Fannie Mae and Freddie Mac. When these mortgages defaulted in 2007 and 2008, they drove down housing prices and weakened banks and other mortgage holders, causing the crisis. After this book is published, no one will be able to claim that the financial crisis was caused by insufficient regulation, or defend Dodd-Frank, without coming to terms with the data this book contains.

Author : Mark P. Taylor
Publisher : Unknown
Page : 219 pages
File Size : 48,9 Mb
Release : 2009
Category : Electronic
ISBN : OCLC:635340264

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The Global Financial Crisis by Mark P. Taylor Pdf

Author : Andrew Farlow
Publisher : Unknown
Page : 435 pages
File Size : 48,7 Mb
Release : 2013-04-11
Category : Business & Economics
ISBN : 9780199578016

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Crash and Beyond by Andrew Farlow Pdf

Explores the multiple roots of the crisis, including the build-up of global economic imbalances, the explosion in the use of novel financial instruments, the mismanagement of risk, and the specific roles played by housing and debt.

Author : Financial Crisis Inquiry Commission
Publisher : PublicAffairs
Page : 576 pages
File Size : 41,7 Mb
Release : 2011-01-27
Category : Business & Economics
ISBN : 9781610390422

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The Financial Crisis Inquiry Report, Authorized Edition by Financial Crisis Inquiry Commission Pdf

The definitive report on what caused America's economic meltdown and who was responsibleThe financial and economic crisis has touched the lives of millions of Americans who have lost their jobs and their homes, but many have little understanding of how it happened. Now, in this very accessible report, readers can get the facts. Formed in May 2009, the Financial Crisis Inquiry Commission (FCIC) is a panel of 10 commissioners with experience in business, regulations, economics, and housing, chosen by Congress to explain what happened and why it happened. This panel has had subpoena power that enabled them to interview people and examine documents that no reporter had access to. The FCIC has reviewed millions of pages of documents, and interviewed more than 600 leaders, experts, and participants in the financial markets and government regulatory agencies, as well as individuals and businesses affected by the crisis. In the tradition of The 9/11 Commission Report, "The Financial Crisis Inquiry Report" will be a comprehensive book for the lay reader, complete with a glossary, charts, and easy-to-read diagrams, and a timeline that includes important events. It will be read by policy makers, corporate executives, regulators, government agencies, and the American people.

Author : P. Arestis,R. Sobreira,José Luis Oreiro
Publisher : Springer
Page : 268 pages
File Size : 43,5 Mb
Release : 2010-11-24
Category : Business & Economics
ISBN : 9780230303942

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The Financial Crisis by P. Arestis,R. Sobreira,José Luis Oreiro Pdf

The 2008 financial crisis poses three fundamental questions for economists and policy makers; understanding the origins of the crisis, understanding the consequences of this crisis for the world economy, and finally understanding why the 2008 financial crisis is not as serious as the 1929 crisis. The prevailing view is that the 2008 financial crisis was solely the result of inadequate financial regulation together with a very loose monetary policy conducted by central banks, especially the Fed. It is believed that this crisis is a temporary detour in the normal course of the events, so that in the near future capitalist economies will resume the high growth path observed before the crisis. In terms of the third question, there is a widespread view that the fundamental reason that explains the avoidance of the harmful experiences of 1929 was the fiscal and monetary policy expansions in developed countries. No important role is assigned to developing countries in terms of the effects of the financial crisis. This book challenges the prevailing orthodoxy surrounding the origins and the consequences of the 2008 financial crisis. The book demonstrates that measures in addition to a profound change in the financial regulation are required if a new financial crisis is to be avoided in the future, measures include: a change in the conduct of economic policy; a reform of the national and international monetary systems; and a radical change in the pattern of income distribution. This book is essential reading for all interested in macroeconomics, monetary policy, development economics and the global impact of the financial crisis.

Author : Howard Davies
Publisher : John Wiley & Sons
Page : 240 pages
File Size : 42,5 Mb
Release : 2014-02-25
Category : Business & Economics
ISBN : 9780745680774

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The Financial Crisis by Howard Davies Pdf

There is still no consensus on who or what caused the financial crisis which engulfed the world, beginning in the summer of 2007. A huge number of suspects have been identified, from greedy investment bankers, through feckless borrowers, dilatory regulators and myopic central bankers to violent video games and high levels of testosterone among the denizens of trading floors. There is not even agreement on whether the crisis shows a need for more government intervention in markets, or less: some maintain that government encouragement of home ownership lay at the heart of the problem in the US, in particular. In The Financial Crisis Howard Davies charts a course through these arguments, and the evidence advanced for each of them. The reader can thereby assess the weight to be attached to each, and the likely effectiveness of the remedies under development.

Author : Jeanne Barnett
Publisher : Unknown
Page : 0 pages
File Size : 48,9 Mb
Release : 2015
Category : Economic development
ISBN : 163483481X

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Global Financial Crisis by Jeanne Barnett Pdf

The impact of the Global Financial Crisis was felt in 2008 and its repercussions are still with us today. In this book, the authors set the context for examining the crisis by looking at a regional crisis that occurred a decade earlier but whose lessons about financial fragility were soon forgotten. The authors then move to the present and discuss the views of a number of economics who to various degrees predicted or forewarned of the impending crisis. In the second chapter, the elements that caused the latest and current problems in the U.S. and consequently to all economies of the world, due to the systemic risk of globalisation, are determined. The third chapter advocates the intangible and tacit knowledge in the knowledge based society of the 21st century, exacerbates the problem of moral agency in today's organisations, making the boundaries and accountability of decision-making especially vague and ambiguous. The authors apply this concept as a means to enhance the moral agency to organisations in the context of the knowledge based society, and as a key part of responsible leadership after the global financial crisis of 2008. The fourth chapter reviews aspects of the new rules that apply to investment firms and to banks, making comment on individual provisions as necessary. In the last chapter, the serious effects of a bubble and its burst in small countries in Central and Eastern Europe are looked at and discussed in detail.

Author : Mathias Dewatripont,Jean-Charles Rochet,Jean Tirole
Publisher : Princeton University Press
Page : 148 pages
File Size : 41,6 Mb
Release : 2015-09-22
Category : Business & Economics
ISBN : 9780691168197

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Balancing the Banks by Mathias Dewatripont,Jean-Charles Rochet,Jean Tirole Pdf

The financial crisis that began in 2007 in the US swept the world, producing substantial bank failures and forcing unprecedented state aid for the crippled global financial system. This book draws critical lessons from the causes of the crisis and proposes important regulatory reforms.

Author : Youssef Cassis,Jean-Jacques van Helten
Publisher : Bloomsbury Publishing
Page : 241 pages
File Size : 41,5 Mb
Release : 2021-08-12
Category : Political Science
ISBN : 9780755626649

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The Legacy of the Global Financial Crisis by Youssef Cassis,Jean-Jacques van Helten Pdf

Much has been written on the financial crisis of 2008 – the most severe economic downturn since the Great Depression – analysing its causes and the risks for the future of the global economy. This book takes an alternative approach which focuses on the legacy of the global financial crisis, what is remembered and what lessons have been drawn from it. This volume provides perspectives on this legacy from a variety of contributors including central bankers, regulators, politicians, academics, and journalists. They offer insight into what remains of the crisis in terms of public and industry awareness, changes to the post-2008 financial architecture, lessons from the national experiences of highly exposed small economies, and considers this legacy in terms of oversight by regulatory regimes. These diverse perspectives are drawn together here to ask how we can ensure that these lessons will be transmitted to the new generation of global financiers.