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Money manager capitalism and the global financial crisis

Wray, L. Randall - 2009

This paper applies Hyman Minsky’s approach to provide an analysis of the causes of the global financial crisis. Rather than finding the origins in recent developments, this paper links the crisis to the long-term transformation of the economy from a robust financial structure in the 1950s to...

Persistent link: https://www.econbiz.de/10003943049

Theoretical notes on bubbles and the current crisis

Martin, Alberto; Ventura, Jaume - 2011

fiscal policy. - Bubbles ; financial accelerator ; credit constraints ; financial crisis ; pyramid schemes …

Persistent link: https://www.econbiz.de/10009160016

Leveraged bubbles

Jordà, Òscar; Schularick, Moritz; Taylor, Alan M. - 2015

What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 … countries over the past 140 years. History shows that not all bubbles are alike. Some have enormous costs for the economy, while … others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit …

Persistent link: https://www.econbiz.de/10011309562

Early warning indicator model of financial developments using an ordered logit

Reimers, Hans-Eggert - 2012

The recent financial crisis has demonstrated in an impressive way that boom/bust cycles can have devastating effects on the real economy. This paper aims at contributing to the literature on early warning indicator exercises for asset price development. Using a sample of 17 industrialised OECD...

Persistent link: https://www.econbiz.de/10009658569

Should monetary policy lean against housing market booms?

Alpanda, Sami; Ueberfeldt, Alexander - 2016

Should monetary policy lean against housing market booms? We approach this question using a small-scale, regime-switching New Keynesian model, where housing market crashes arrive with a logit probability that depends on the level of household debt. This crisis regime is characterized by an...

Persistent link: https://www.econbiz.de/10011454083

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/10010398976

From boom to bust : how different has microfinance been from traditional banking?

Wagner, Charlotte - 2010

This paper presents an in-depth analysis of developments in the microfinance sector before and after the Lehman Brothers collapse in 2008 by comparing them with developments in traditional banking sectors of emerging market economies and developing countries. The findings indicate that...

Persistent link: https://www.econbiz.de/10008758753

Theoretical Notes on Bubbles and the Current Crisis

Martin, Alberto - 2011

We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...

Persistent link: https://www.econbiz.de/10013124891

Banking Bubbles and Financial Crisis

Miao, Jianjun - 2012

. There is no uncertainty about economic fundamentals. Banking bubbles can emerge through a positive feedback loop mechanism …. Changes in household confidence can cause the collapse of bubbles, resulting in a financial crisis. Credit policy can mitigate … economic downturns but also incur an efficiency loss. Bank capital requirements can prevent the formation of banking bubbles by …

Persistent link: https://www.econbiz.de/10013107959

Leveraged Bubbles

Jorda, Oscar - 2015

Persistent link: https://www.econbiz.de/10013014986