Liquidity Payment And Endogenous Financial Fragility PDF Download
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| Author | : Charles M. Kahn |
| Publisher | : |
| Total Pages | : 36 |
| Release | : 2010 |
| Genre | : |
| ISBN | : |
Download Liquidity, Payment and Endogenous Financial Fragility Book in PDF, ePub and Kindle
We study the fragility of the banking system in relation to its role in liquidity creation. In our framework, fragility stems from the interconnections banks establish to protect themselves from liquidity shocks. In the absence of contractual constraints, banks choose the optimal degree of mutual insurance, because market participants correctly take into account the economic effects of their own interdependence. When banks are in the business of providing liquidity, some contractual flexibility is missing. In this case, we show that banks have an incentive to become too risky in aggregate, since some of the beneficiaries of the liquidity provision are unable to compensate the banks for remaining solvent. We examine possible regulatory remedies for this problem.
| Author | : Franklin Allen |
| Publisher | : OUP USA |
| Total Pages | : 718 |
| Release | : 2011-01-13 |
| Genre | : Business & Economics |
| ISBN | : 0195390709 |
Download Liquidity and Crises Book in PDF, ePub and Kindle
One important cause of the 2007-2009 crisis was illiquidity combined with exposure of many financial institutions to liquidity needs. But what is liquidity and why is it so important for financial institutions to command enough liquidity? This book brings together classic articles and recent contributions to this important field.
| Author | : L. Randall Wray |
| Publisher | : Edward Elgar Publishing |
| Total Pages | : 360 |
| Release | : 1990 |
| Genre | : Business & Economics |
| ISBN | : |
Download Money and Credit in Capitalist Economies Book in PDF, ePub and Kindle
This widely acclaimed book argues that money is not the product of a simple deposit multiplier process. The impressive analysis includes discussions of the origins and nature of money and of the evolution of monetary institutions and theory. Unlike other recent works on 'endogenous money', this book incorporates liquidity preference theory within the analysis by carefully distinguishing money from liquidity and by showing how money, but not liquidity, is created on demand. This naturally leads to a role for liquidity preference in the determination of interest rates. Extensions then link money to financial instability, the expenditure multiplier, credit, saving, investment, development, deficits and growth. This controversial and provocative book will be essential reading for all economists and researchers concerned with monetary and macroeconomics. It will have particular appeal to post Keynesian economists.
| Author | : Fernando J. Cardim de Carvalho |
| Publisher | : Routledge |
| Total Pages | : 169 |
| Release | : 2015-05-22 |
| Genre | : Business & Economics |
| ISBN | : 1317560817 |
Download Liquidity Preference and Monetary Economies Book in PDF, ePub and Kindle
The 2008 international crisis has revived the interest in Keynes’s theories and, in particular, on Minsky’s models of financial fragility. The core proposition of these theories is that money plays an essential role in modern economies, which is usually neglected in other approaches. This is Keynes’s liquidity preference theory, which is also the foundation for Minsky’s model, a theory that has been largely forgotten in recent years. This book looks at liquidity preference theory and its most important problems, showing how one should understand the role of money in modern monetary economies. It develops Keynes’s and Minsky’s financial view of money, relating it to the process of capital accumulation, the determination of effective demand and the theory of output, and employment as a whole. Building on the author’s significant body of work in the field, this book delves into a broad range of topics allowing the general reader to understand propositions that have been mistreated in the literature including Keynes and the concept of monetary production economy; uncertainty, expectations and money; short and long period; liquidity preference theory as a theory of asset pricing under uncertainty; asset prices and capital accumulation; Keynes’s version of the principle of effective demand; and the role of macroeconomic policy. It will be essential reading for all students and scholars of Post-Keynesian economics.
| Author | : A. G. Malliaris |
| Publisher | : Oxford University Press |
| Total Pages | : 521 |
| Release | : 2016 |
| Genre | : Business & Economics |
| ISBN | : 0199386226 |
Download The Global Financial Crisis and Its Aftermath Book in PDF, ePub and Kindle
Introduction -- The global financial crisis of 2007-09 : an overview of neglected ideas from economics, psychology, and values / A.G. Malliaris, Leslie Shaw, and Hersh Shefrin -- The global financial crisis of 2007-09 and economics -- From asset price bubbles to liquidity traps / A.G. Malliaris -- A minsky meltdown: lessons for central bankers / Janet Yellen -- Modeling financial instability / Steve Keen -- Assessing the contribution of hyman minsky's perspective to our understanding of economic instability / Hersh Shefrin -- The Great Recession of 2008-09 and its impact on unemployment / John Silvia -- Mathematical definition, mapping, and detection of (anti)fragility / Nassim Taleb and Rafael Douady -- The global financial crisis of 2007-09 and psychology -- The varieties of incentive experience / Robert Kolb -- Goals and the organization of choice under risk in both the long run and the short run / Lola Lopes -- Topology of greed and fear / Graciela Chichilnisky -- A sustainable understanding of instability in minds and in markets / Leslie Shaw -- Existence of monopoly in the stock market : a model of information-based manipulation / Viktoria Dalko, Lawrence R. Klein, S. Prakash Sethi, and Michael Wang -- Crisis of authority / Werner DeBondt -- Social structure, power, and financial fraud / Brooke Harrington -- The global financial crisis of 2007-09 and values -- Economics, self psychology, and ethics : why modern economic persons cheat and how self psychology can provide the basis for a trustworthy economic world / John Riker -- Finance professionals in the market for status / Meir Statman -- Why risk management failed: ethical and behavioral explanations / John Boatright -- The global financial crisis and social justice : the crisis seen through the lens of Catholic social doctrine / Paul Fitzgerald, S.J -- The moral benefits of financial crises: a virtue ethics perspective / John Dobson -- Three ethical dimensions of the financial crisis / Antonio Argandonan -- Epilogue -- Lessons for future financial stability / A.G. Malliaris, Leslie Shaw, and Hersh Shefrin
| Author | : Mr.Garry J. Schinasi |
| Publisher | : International Monetary Fund |
| Total Pages | : 32 |
| Release | : 2006-01-09 |
| Genre | : Business & Economics |
| ISBN | : 9781589063563 |
Download Preserving Financial Stability Book in PDF, ePub and Kindle
Spurred by advances in information and computer technologies, financial liberalization and innovation took off inthe late 1970s. Although the changes in financial markets have been beneficial overall, our understanding of the new risks to financial stability lags behind, as demonstrated by the financial crises of the past couple of decades. The study of international financial stability - a public good - is still in its infancy. This pamphlet, aimed at stimulating further debate on the subject, proposes a definition of financial stability and a broad framework for safeguarding it without inhibiting its dynamic development or limiting its benefits.
| Author | : Alessio M. Pacces |
| Publisher | : |
| Total Pages | : 58 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download Illiquidity and Financial Crisis Book in PDF, ePub and Kindle
This article analyzes the determinants of liquidity crises based on the dynamics of banking and finance under Knightian uncertainty. In this perspective, the facts of the global financial crisis seem to confirm Minsky's hypothesis of endogenous financial instability derived from Keynes's theory of liquidity and expectations. Conventional expectations allow overcoming uncertainty via the liquidity of secondary markets and, in turn, of banks' liabilities that are accepted as money. However, the failure of existing conventions precipitates the system into uncertainty-driven liquidity spirals, which are the more dangerous the more private money financial intermediaries have managed to create in the first place. Despite limited availability of data that can proxy for Knightian uncertainty, this approach to liquidity problems may explain better than others how a relatively small shock, such as the default of US subprime mortgages, could trigger a worldwide systemic crisis.The policy implications of this understanding of illiquidity are twofold. First, financial crises should be policed by tailoring the lender of last resort function of central banks to the creation of private money. By the same token, banking should be defined and regulated according to this monetary function performed by financial intermediaries, whether banks or non-banks. These institutions should face payout restrictions while being prevented from using retained earnings to increase the quantity of private money they can create through their balance sheet.Second, the corporate governance of banks should allow insulating managers and controlling shareholders from the short-termism of stock markets. Inasmuch as myopic stock markets influence the balance sheet choices of bankers, investor-friendly corporate governance is a major amplifier of liquidity crises. This article thus suggests combining long-term remuneration with the possibility for bank managers to claim a compensation for parting with control. Similar implications are derived for controlling shareholders.
| Author | : Marc Lavoie |
| Publisher | : Department of Economics, University of Ottawa = Dép. de science économique, Université d'Ottawa |
| Total Pages | : 36 |
| Release | : 1995 |
| Genre | : Business & Economics |
| ISBN | : |
Download Loanable Funds, Endogenous Money, and Minsky's Financial Fragility Hypothesis Book in PDF, ePub and Kindle
| Author | : Hyun Song Shin |
| Publisher | : OUP Oxford |
| Total Pages | : 208 |
| Release | : 2010-05-27 |
| Genre | : Business & Economics |
| ISBN | : 0191613835 |
Download Risk and Liquidity Book in PDF, ePub and Kindle
This book presents the Clarendon Lectures in Finance by one of the leading exponents of financial booms and crises. Hyun Song Shin's work has shed light on the recent global financial crisis and he has been a central figure in the policy debates. The paradox of the global financial crisis is that it erupted in an era when risk management was at the core of the management of the most sophisticated financial institutions. This book explains why. The severity of the crisis is explained by financial development that put marketable assets at the heart of the financial system, and the increased sophistication of financial institutions that held and traded the assets. Step by step, the lectures build an analytical framework that take the reader through the economics behind the fluctuations in the price of risk and the boom-bust dynamics that follow. The book examines the role played by market-to-market accounting rules and securitisation in amplifying the crisis, and draws lessons for financial architecture, financial regulation and monetary policy. This book will be of interest to all serious students of economics and finance who want to delve beneath the outward manifestations to grasp the underlying dynamics of the boom-bust cycle in a modern financial system - a system where banking and capital market developments have become inseparable.
| Author | : Allen N. Berger |
| Publisher | : Academic Press |
| Total Pages | : 296 |
| Release | : 2015-11-24 |
| Genre | : Business & Economics |
| ISBN | : 0128005319 |
Download Bank Liquidity Creation and Financial Crises Book in PDF, ePub and Kindle
Bank Liquidity Creation and Financial Crises delivers a consistent, logical presentation of bank liquidity creation and addresses questions of research and policy interest that can be easily understood by readers with no advanced or specialized industry knowledge. Authors Allen Berger and Christa Bouwman examine ways to measure bank liquidity creation, how much liquidity banks create in different countries, the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, the effects of bailouts, and much more. They also analyze bank liquidity creation in the US over the past three decades during both normal times and financial crises. Narrowing the gap between the "academic world" (focused on theories) and the "practitioner world" (dedicated to solving real-world problems), this book is a helpful new tool for evaluating a bank’s performance over time and comparing it to its peer group. Explains that bank liquidity creation is a more comprehensive measure of a bank’s output than traditional measures and can also be used to measure bank liquidity Describes how high levels of bank liquidity creation may cause or predict future financial crises Addresses questions of research and policy interest related to bank liquidity creation around the world and provides links to websites with data and other materials to address these questions Includes such hot-button topics as the effects of monetary policy (including interest rate policy, lender of last resort, and quantitative easing), the effects of capital, the effects of regulatory interventions, and the effects of bailouts
