Bayoumi, Tamim; Bhatia, Ashok Vir - International Monetary Fund (IMF) - 2012
This paper questions the view that leverage should have forewarned us of the global financial crisis of 2007-09, pointing to several gearing indicators that were neither useful portents of the onset of the crisis nor of its ferocity. Instead it shows, first, that the use of ill-suited collateral...