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Are Banks Passive Liquidity Backstops? Deposit Rates and Flows During the 2007-2009 Crisis
Acharya, Viral V. - 2012
Can banks maintain their advantage as liquidity providers when they are heavily exposed to a financial crisis? The standard argument - that banks can - hinges on deposit inflows that are seeking a safe haven and provide banks with a natural hedge to fund drawn credit lines and other commitments....
Persistent link: https://www.econbiz.de/10013110924
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Should We Fear Derivatives?
Stulz, René M. - 2004
This paper discusses the extent to which derivatives pose threats to firms and to the economy. After reviewing the derivatives markets and putting in perspective the various measures of the size of these markets, the paper shows who uses derivatives and why. The difficulties firms face in...
Persistent link: https://www.econbiz.de/10012785605
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Credit Default Swaps and the Credit Crisis
Stulz, René M. - 2010
contracts involving counterparty risk and that they facilitate speculation involving negative views of a firm's financial …
Persistent link: https://www.econbiz.de/10013150831
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Uncertainty as Commitment
Nosal, Jaromir B. - 2013
Time-inconsistency of no-bailout policies can create incentives for banks to take excessive risks and generate endogenous crises when the government cannot commit. However, at the outbreak of financial problems, usually the government is uncertain about their nature, and hence it may delay...
Persistent link: https://www.econbiz.de/10013087435
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Crash Risk in Currency Markets
Farhi, Emmanuel - 2010
expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both … Gaussian and disaster risk and can be estimated even in samples that do not contain disasters. Estimating the model over the …
Persistent link: https://www.econbiz.de/10013152552
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Did Fair-Value Accounting Contribute to the Financial Crisis?
Laux, Christian - 2010
The recent financial crisis has led to a major debate about fair-value accounting. Many critics have argued that fair-value accounting, often also called mark-to-market accounting, has significantly contributed to the financial crisis or, at least, exacerbated its severity. In this paper, we...
Persistent link: https://www.econbiz.de/10013150289
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Crisis and Responses : The Federal Reserve and the Financial Crisis of 2007-2008
Cecchetti, Stephen G. - 2010
Realizing that their traditional instruments were inadequate for responding to the crisis that began on 9 August 2007, Federal Reserve officials improvised. Beginning in mid-December 2007, they implemented a series of changes directed at ensuring that liquidity would be distributed to those...
Persistent link: https://www.econbiz.de/10012759107
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Causes of the Korean Financial Crisis : Lessons for Policy
Hahm, Joon-Ho; Mishkin, Frederic S. - 2022
This paper uses an asymmetric information framework to understand the causes of the recent financial crisis in Korea. It shows that the Korean data is consistent with this explanation of the crisis. It then draws on this analysis to discuss several lessons that can help guide Korean policymakers...
Persistent link: https://www.econbiz.de/10013311629
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Financial Policies and the Financial Crisis : How Important Was the Systemic Credit Contraction for Industrial Corporations?
Kahle, Kathleen M. - 2014
Although firm financial policies were affected by a credit contraction during the recent financial crisis, the impact of increased uncertainty and decreased growth opportunities was stronger than that of the credit contraction per se. From the start of the financial crisis (third quarter of...
Persistent link: https://www.econbiz.de/10013069349
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Risk Sharing Externalities
Bocola, Luigi; Lorenzoni, Guido - 2022
aggregate risk. We propose a theory to explain these risk exposures. We study a financial accelerator model where entrepreneurs … inefficiently high risk exposure for entrepreneurs …
Persistent link: https://www.econbiz.de/10013295840