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Stories of the Twentieth Century for the Twenty-First
Gourinchas, Pierre-Olivier; Obstfeld, Maurice - C.E.P.R. Discussion Papers - 2011
A key precursor of twentieth-century financial crises in emerging and advanced economies alike was the rapid buildup of leverage. Those emerging economies that avoided leverage booms during the 2000s also were most likely to avoid the worst effects of the twenty-first century’s first global...
Persistent link: https://www.econbiz.de/10009201122
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Leverage and Asset Bubbles: Averting Armageddon with Chapter 11?
Miller, Marcus; Stiglitz, Joseph E - C.E.P.R. Discussion Papers - 2009
An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism driving asset prices to ‘overshoot’ equilibrium when an asset bubble bursts - threatening widespread insolvency and what Richard Koo calls a ‘balance sheet recession’....
Persistent link: https://www.econbiz.de/10008528524
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Optimal Bank Capital
Marcheggiano, Gilberto; Miles, David K; Yang, Jing - C.E.P.R. Discussion Papers - 2011
level of bank capital is. We use empirical evidence on UK banks to assess costs; we use data from shocks to incomes from a …
Persistent link: https://www.econbiz.de/10008915802
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Monetary Policy, Leverage, and Bank Risk-taking
DellAriccia, Giovanni; Laeven, Luc; Marquez, Robert - C.E.P.R. Discussion Papers - 2011
The recent global financial crisis has ignited a debate on whether easy monetary conditions can lead to greater bank … cutoff depends on the degree of bank competition. It is therefore expected to vary across countries and over time. …
Persistent link: https://www.econbiz.de/10008854508
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Betting the House
Jordà, Òscar; Schularick, Moritz; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2014
Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies. We...
Persistent link: https://www.econbiz.de/10011145419
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The Great Mortgaging: Housing Finance, Crises, and Business Cycles
Jordà, Òscar; Schularick, Moritz; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2014
This paper unveils a new resource for macroeconomic research: a long-run dataset covering disaggregated bank credit for …
Persistent link: https://www.econbiz.de/10011083232
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Robust Capital Regulation
Acharya, Viral V; Mehran, Hamid; Schuermann, Til; … - C.E.P.R. Discussion Papers - 2012
We address the following questions concerning bank capital: why are banks so highly levered, what are the consequences … of this leverage for the economy as a whole, and how can robust capital regulation be designed to restrict bank leverage … to levels that do not generate excessive systemic risk? Bank leverage choices are a delicate balancing act: credit …
Persistent link: https://www.econbiz.de/10011083636
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Banking Competition and Stability: The Role of Leverage
Freixas, Xavier; Ma, Kebin - C.E.P.R. Discussion Papers - 2014
This paper reexamines the classical issue of the possible trade-o s between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model we show that competition can affect portfolio risk, insolvency risk, liquidity...
Persistent link: https://www.econbiz.de/10011084258
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Lessons from the 2007 Financial Crisis
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2007
Tripartite financial stability arrangement between the Treasury the Bank of England and the FSA, weaknesses in the Bank of …
Persistent link: https://www.econbiz.de/10005791213