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Leaning against the wind and crisis risk

Schularick, Moritz; Ter Steege, Lucas; Ward, Felix - 2020

Can central banks defuse rising stability risks in financial booms by leaning against the wind with higher interest …

Persistent link: https://www.econbiz.de/10012260596

The problems of inflation targeting originate in the monetary theory of Knut Wicksell

Jonung, Lars - 2022

The theoretical foundation of inflation targeting was laid out by the Swedish economist Knut Wicksell (1851-1926) in his groundbreaking treatise, Interest and Prices, published originally in German in 1898. Here he proposed price stability as the rule for monetary policy. Today, inflation...

Persistent link: https://www.econbiz.de/10013270300

The repeal of the glass-steagall act and the Federal Reserve's extraordinary intervention during the global financial crisis

Nersisyan, Yeva - 2015

to commercial banks. During the crisis, however, the Federal Reserve created a number of facilities to support brokers … banks to nonbank financial institutions. In a specialized financial system, which the GSA had helped create, the use of the … lender-of-last-resort safety net could be more comfortably limited to commercial banks. However, the elimination of GSA …

Persistent link: https://www.econbiz.de/10010467778

Political Booms, Financial Crises

Herrera, Helios; Ordoñez, Guillermo; Trebesch, Christoph - 2014

We show that political booms, measured by the rise in governments’ popularity, predict financial crises above and beyond other better-known early warning indicators, such as credit booms. This predictive power, however, only holds in emerging economies. We show that governments in emerging...

Persistent link: https://www.econbiz.de/10010427705

Contagion and Spillovers: New Insights from the Crisis

Backé, Peter; Feldkircher, Martin; Gnan, Ernest; … - 2010

On February 12, 2010, SUERF, the Oesterreichische Nationalbank and the Bankwissenschaftliche Gesellschaft continued their established tradition of jointly organised conferences. As evidenced also by the 115 conference participants, this year's subject of "Contagion and Spillovers – New...

Persistent link: https://www.econbiz.de/10011689946

Self-fulfilling liquidity dry-ups

Malherbe, Frédéric - 2010

Secondary markets for long-term assets might be illiquid due to adverse selection. In a model in which moral hazard is confined to project initiation, I find that: (1) when agents expect a liquidity dry-up on such markets, they optimally choose to self-insure through the hoarding of...

Persistent link: https://www.econbiz.de/10011506705

Tackling the volatility paradox : spillover persistence and systemic risk

Kubitza, Christian - 2024

Financial losses can have persistent effects on the financial sy stem. This paper proposes an empirical measure for the duration of these effects, S pillover P ersistence. I d ocument that Spillover Persistence is strongly correlated with financial c onditions; d uring b anking crises, Spillover...

Persistent link: https://www.econbiz.de/10015176897

On the existence and prevention of speculative bubbles

Enders, Zeno; Hakenes, Hendrik - 2014

We develop a parsimonious model of bubbles based on the assumption of imprecisely known market depth. In a speculative bubble, traders drive the price above its fundamental value in a dynamic way, driven by rational expectations about future price developments. At a previously unknown date, the...

Persistent link: https://www.econbiz.de/10010393456

The great mortgaging : housing finance, crises, and business cycles

Jordà, Òscar; Schularick, Moritz; Taylor, Alan M. - 2014

17 advanced economies since 1870. The new data show that the share of mortgages on banks’ balance sheets doubled in the …

Persistent link: https://www.econbiz.de/10010412763

Cross-border liquidity, relationships and monetary policy : evidence from the Euro area interbank crisis

Abbassi, Puriya; Bräuning, Falk; Fecht, Falko; … - 2014 - This version: November 2014

- border lending after the Lehman failure; for banks headquartered in periphery countries, the impact is quantitatively …

Persistent link: https://www.econbiz.de/10010471858