pain or blessing during financial crises

... Factors Causing Financial Crises • Well-working financial system solves asymmetric information problems • Financial crises occurs when increases in asymmetric information causes severe ... the Canadian Financial Crises Copyright  2011 9-9 The Subprime Financial Crisis of 20072008 • Subprime mortgages for less creditworthy counterparties • Alt-A mortgages for borrowers with higher ... Canadian Financial Crises: Stage • Worsening business conditions and uncertainty leads depositors to withdraw their funds • Decreases the number of banks and worsens both adverse selection and moral...

Ngày tải lên: 05/01/2014, 16:56

... industry A subprime loan can be (i) originated to a borrower with a low credit score and /or history of delinquency or bankruptcy, and /or poor employment history; (ii) originated by lenders specializing ... even for subprime market) delinquency and foreclosure rates for mortgages originated in 2006 and 2007 High rates of foreclosures, declining home values, borrowers’ impaired credit histories, ... devastating for many, was not unique in the history of the United States or for other countries around the world We review the analyses of bank failure and suggested remedies for financial crises in...

Ngày tải lên: 16/02/2014, 06:20

... It incorporates the long-standing importance of housing in the transmission mechanism Section concludes and offers some policy advice for the current recovery in light of the historical record II ... trough (Macroeconomic Advisors, 2009) This might be thought of as a worse contraction than one that is more linear Or, the cycle might have a “V” shape or a “U” shape or some other imaginative ... for the post-World War II period Thus, for most of the sample, a more severe crisis means a stronger recovery Another approach preserves the interaction between the simple dummy for financial crises...

Ngày tải lên: 06/03/2014, 19:20

... Instituto Nacional de Estadística for 2002–05 For Ecuador, data for 1988–2005 are from the International Labor Organization’s LABORSTA database For Morocco, data for 1999–2002 are from the Direction ... linearly for countries with data gaps of seven or fewer missing observations between 1980 and 2005 For Bolivia, data are from the International Labor Organization’s LABORSTA database for 1988–2001 ... Working Paper Research Department Rising Income Inequality: Technology, or Trade and Financial Globalization? Prepared by Florence Jaumotte, Subir Lall, and Chris Papageorgiou1 Authorized for...

Ngày tải lên: 06/03/2014, 19:20

... 21 For the corporate business sector— where income is split into capital and labor by the BEA— we …nd = 0:29: For noncorporate businesses which include proprietors, we need to split proprietor’ ... capital and labor income s in order to compute the capital income share We attribute 0:788 percent of proprietor’ income to labor income and s …nd a capital share for the noncorporate sector of 0:29 ... of the U.S business sector, namely the corporate …nancial businesses and the noncorporate businesses, as the model’ …nancial intermediation sector In U.S data, noncorporate businesses are s strongly...

Ngày tải lên: 15/03/2014, 14:20

... former and more than half (57 percent) of the latter TFP also fell in both sectors, more in the non traded, than in the traded goods sector We see therefore that our model augmented with labor ... introduce the labor and capital friction and show that they are necessary to account for the fall in output in each sector and the flows of labor and capital across sectors Section performs some robustness ... traded good is exported and used for borrowing and lending A representative firm in each sector produces according to a constant returns to scale production function using capital, labor and intermediate...

Ngày tải lên: 15/03/2014, 22:20

... indicators of the seriousness of financial problems, we are forced to rely on dummy variables to indicate periods of crisis Despite this problem, we generally find an important role for financial crises particularly ... erodes the net worth position of borrowers A weakening financial position affects the borrower's actions (e.g., the firm may try to conserve financial capital by laying off workers or cutting back ... in which, for institutional or historical reasons, deflation led to panics or other severe banking problems had significantly worse depressions than countries in which banking was more stable...

Ngày tải lên: 22/03/2014, 20:21

... Calomiris and Gary Gorton Table 4.4 Net Flows of Cash from New York City Banks to Interior, 1899-1907 For Weeks Prior to October 21, For Weeks Prior to October 21, or Comparable Dates3 or Comparable ... difficult time monitoring the performance of banks A panic can be viewed as a form of monitoring If 121 The Origins of Banking Panics depositors believe that there are some under-performing banks but ... historical origins of banking panics is an important first step toward developing appropriate policy reforms for regulating and insuring financial intermediaries In this regard, it is important...

Ngày tải lên: 22/03/2014, 20:21

... Whether cS ϭ L or cS Ͻ L, it is clear that the first-order conditions for the solution of the incentive-efficient allocation are not satisfied; for example, for R Ͻ R * the first-order condition ... E@R# ~57! Optimal Financial Crises 1277 C Equilibrium An equilibrium for the model with an asset market consists of a portfolio ~L s , X s ! for the representative speculator, a price function ... Press, New York, N.Y.! Calomiris, Charles, and Gary Gorton, 1991, The origins of banking panics, models, facts, and bank regulation, in Glenn Hubbard, ed.: Financial Markets and Financial Crises ~University...

Ngày tải lên: 29/03/2014, 18:20

... punishment to perpetrators during a genuinely systemic crisis—by letting major firms fail or forcing senior creditors to accept haircuts—can pour gasoline on the fire It can signal that more failures and ... And never forget that our work affects the world I worked for Barreda for only a year, but his get-the-right-answer ethic had a deep influence on me My next job at Treasury was working for the U.S ... and it worked, confidence would eventually come back And if it didn’t work, the quality of our theater wouldn’t matter much HISTORY SHOWS that even modest financial crises cause horrific pain One...

Ngày tải lên: 20/07/2014, 20:52

... two enormous financial crises: the Worldwide Financial Crisis and the subsequent European Debt Crisis Throughout these crises many countries and regions faced banking crises or currency crises ... and therefore free for general use While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher ... merits are more than enough to be honored with a Festschrift However, the primary reason for us to organize this Festschrift is that both of us feel deeply indebted for the great support he gave...

Ngày tải lên: 01/11/2014, 12:17

... Acknowledgments ix x xi Introduction PART I THEORIES OF FINANCIAL CRISES Theories of Financial Crises Comparison of Theories of Financial Crises 13 34 PART 11 FINANCIAL CRISES IN THE POSTWAR U.S ECONOMY The ... how financial crises might currently be in the process of change Theories of Financial Crises Theories of Financial Crises The purpose of this chapter is to set out the main theories and concepts ... fundamental workings of an industrialized capitalist economy More contemporary theorists, of course, are also discussed Earlier Theorists Thorstein Veblen An analysis of financial crises was developed...

Ngày tải lên: 01/11/2014, 13:37

... of Financial Crises Information and Crises 31 Crises and the Middle Class 64 What Happens after Crises 101 Financial Intermediaries and the Demand for Change 128 Governments and the Demand for ... haven for capital To restore faith in American corporations, the legendary investor Warren E Buffett called for an end to the most deceptive accounting practices, and in a similar appeal for reforms, ... totally different decision.”3 Foreign investors found the doctored accounting and meretricious information spread by rogue corporations particularly shocking As one German portfolio manager declared,...

Ngày tải lên: 01/11/2014, 17:10

... suppliers, given the short-term horizon of the principal agents on the supply side Investors with short horizons are little concerned with whether capital surges improve or worsen long-term fundamentals ... praised in 1993 by financial institutions, the media, and risk evaluators.24 The incorporation of Mexico into the North American Free Trade Agreement (NAFTA) and the Organization for Economic Cooperation ... rate appreciation and import liberalization led to cheaper imports, which further fed the import boom Third, most inflows were short term or liquid, including a large proportion of interbank lending.16...

Ngày tải lên: 01/11/2014, 18:12

... or currency crises Recent financial crises QUESTIONS OF IMPORTANCE RAISED BY THE RECENT FINANCIAL CRISES The last decade or so has been marked by a significant number of major financial crises including ... crises It is worth watching to see whether lessons from the recent crises were learned well During the crisis period, neighbors and other competitors blamed China for stealing their export markets ... macroeconomic model by incorporating a very thorough specification of the external sector; in particular, the authors specify capital account, foreign direct investment as well as portfolio investment,...

Ngày tải lên: 01/11/2014, 21:22

... and financial crises Financial & economic stability Financial crisis Political security Food security Source: Devised by the author FOOD AND FINANCIAL CRISES Food crisis FOOD AND FINANCIAL CRISES ... 0.4.The correlation is considered to have significantly changed if the coefficient of correlation changed by 0.4 or more The Double Blow to the Poor E ven before the world food crisis, the poorest ... Research Institute Joachim von Braun is the director general of IFPRI FOOD AND FINANCIAL CRISES World Bank 2007 World development report 2008: Agriculture for development.Washington, DC 17 INTERNATIONAL...

Ngày tải lên: 01/11/2014, 21:48

... currencies in the foreign exchange market; in some cases the foreign exchange crises triggered bank crises and in others the bank crises led to foreign exchange crises The cost of these bank crises was ... lender of last resort can provide financial stability or attenuate financial instability The dilemma is that if investors knew in advance that governmental support would be forthcoming under generous ... ‘real’ financial crises that are caused by the shrinkage of the monetary base or highpowered money and ‘pseudo’ crises that not The financial crises in which the monetary base changes early or late...

Ngày tải lên: 03/11/2014, 15:30

... dangerous, more efficient, and more effective at preventing future crises The private sector cannot afford to stand back and wait for the existing protagonists, such as the IMF, the World Bank, or the ... twenty years, and even more sharply over the last ten years During the 1980s, the World Bank counted forty-five major systemic banking crises These are crises in which most or all of the banking ... reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108...

Ngày tải lên: 04/11/2014, 05:04

... when foreign or domestic debts are denominated in foreign currency, or when authorities need to preserve a stable economic environment in order to attract foreign investments and facilitate foreign ... 5.4 Uncorrelated trades of irrational investors The EMH assumes that the transactions of irrational investors, i.e investors who more or less consistently trade on the basis of incorrect information ... Generated Financial Crises Vanguards to the Efficient Markets Hypothesis The Efficient Financial Markets Theory: Birth and Implications Exogenously Generated Speculative Bubbles and Financial Crises Orthodox...

Ngày tải lên: 04/11/2014, 05:43

... punishment to perpetrators during a genuinely systemic crisis—by letting major rms fail or forcing senior creditors to accept haircuts—can pour gasoline on the re It can signal that more failures and ... And never forget that our work a ects the world I worked for Barreda for only a year, but his get-the-right-answer ethic had a deep influence on me My next job at Treasury was working for the U.S ... and it worked, dence would eventually come back And if it didn’t work, the quality of our theater wouldn’t matter much HISTORY SHOWS that even modest financial crises cause horrific pain One...

Ngày tải lên: 04/11/2014, 11:27