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Drawing broadly on the literature on the political economy of the financial crisis, the paper looks at deregulation as a market driven process that culminated in a collective action failure. In the run up to the 2008 Financial Crisis strong competition and moral hazard went hand in hand and that...
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The paper argues that financial deregulation incentivized financial firms to take excessive risks and over-expand because it turned social insurance against systemic risk into a common pool (or open) resource. The increased size and complexity of deregulated financial markets in turn raised the...
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paper introduces, under a cash liquidity hedging capacity, a simple, monotonic, measure of liquidity risk. With a cash … horizon T. The Value at Risk measure, used in this context, is denoted Cash Liquidity at Risk. Cash Liquidity at Risk is not … liquidity risk cost and benefit allocation. We demonstrate that the Cash Liquidity at Risk measure can be allocated and used to …
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