Similar Search Results

Accounting for the Rise in Consumer Bankruptcies

Livshits, Igor - 2010

Personal bankruptcies in the United States have increased dramatically, rising from 1.4 per thousand working age population in 1970 to 8.5 in 2002. We use a heterogeneous agent life-cycle model with competitive financial intermediaries who can observe households' earnings, age and current asset...

Persistent link: https://www.econbiz.de/10012759871

Amplification Mechanisms in Liquidity Crises

Krishnamurthy, Arvind - 2010

I describe two amplifications mechanisms that operate during liquidity crises and discuss the scope for central bank … disengage from markets and increase their demand for liquidity. This behavior leads to a loss of liquidity and a crisis …

Persistent link: https://www.econbiz.de/10013152569

How the Subprime Crisis Went Global : Evidence from Bank Credit Default Swap Spreads

Eichengreen, Barry - 2010

How did the Subprime Crisis, a problem in a small corner of U.S. financial markets, affect the entire global banking system? To shed light on this question we use principal components analysis to identify common factors in the movement of banks' credit default swap spreads. We find that fortunes...

Persistent link: https://www.econbiz.de/10012757524

Liquidity Risk after 20 Years

Pástor, Ľuboš; Stambaugh, Robert F. - 2021

the results in Pástor and Stambaugh (2003). Both studies successfully replicate our market-wide liquidity measure and find … similar estimates of the liquidity risk premium. In the sample period after our study, the liquidity risk premium estimates … are even larger, and the liquidity measure displays sharp drops during the 2008 financial crisis. We respond to both …

Persistent link: https://www.econbiz.de/10013224967

Arresting Banking Panics : Fed Liquidity Provision and the Forgotten Panic of 1929

Carlson, Mark - 2010

Scholars differ on whether Federal Reserve intervention mitigated banking panics during the Great Depression and in recent years. The last panic prior to the Depression sheds light on this debate. In April 1929, a fruit fly infestation in Florida forced the U.S. government to quarantine fruit...

Persistent link: https://www.econbiz.de/10013137022

Stressed Not Frozen : The Fed Funds Market in the Financial Crisis

Afonso, Gara - 2010

, we do not find that worse performing banks start hoarding liquidity and indiscriminately reduce their lending …

Persistent link: https://www.econbiz.de/10013146948

U.S. Banks and Global Liquidity

Correa, Ricardo; Du, Wenxin; Liao, Gordon - 2022

We characterize how U.S. global systemically important banks (GSIBs) supply short-term dollar liquidity in repo and …-of-second-to-last-resort". Using daily supervisory bank balance sheet information, we find that U.S. GSIBs modestly increase their dollar liquidity … increases, and during the balance sheet taper of the Federal Reserve. The increase in the dollar liquidity provision is mainly …

Persistent link: https://www.econbiz.de/10013305927

Developing the Ecu Markets : Perspectives on Financial Innovation

Levich, Richard M. - 2010

The European Currency Unit (ECU) was officially introduced in March 1979 and has joined the ranks of innovative financial products that are rapidly appearing. The purpose of the paper is to explore the properties of the ECU and analyze those characteristics of the ECU, and products denominated...

Persistent link: https://www.econbiz.de/10012762910

Deflation, Silent Runs, and Bank Holidays, in the Great Contraction

Rockoff, Hugh - 2021

This paper argues that the banking crises in the United States in the early 1930s were similar to the twin crises' -- banking and balance of payments crises -- which have occurred in developing countries in recent years. The downturn that began in 1929 undermined banks that had made risky loans...

Persistent link: https://www.econbiz.de/10013220071

The 2007 Subprime Market Crisis Through the Lens of European Central Bank Auctions for Short-Term Funds

Cassola, Nuno - 2009

In this paper we study European banks' demand for short-term funds (liquidity) during the summer 2007 subprime market …-turmoil liquidity costs, as estimated by our model, are predictive of their post-turmoil liquidity costs, and that there is considerable …

Persistent link: https://www.econbiz.de/10013157928