CEPR - The First Global Financial Crisis of the 21st Century
Publisher: CEPR | ISBN: 978-0-9557009-3-4 | edition June 2008 | PDF | 204 pages | 1,12 mb
Publisher: CEPR | ISBN: 978-0-9557009-3-4 | edition June 2008 | PDF | 204 pages | 1,12 mb
CEPR - The First Global Financial Crisis of the 21st Century. Vol.2 June – December, 2008
Publisher: CEPR | ISBN: 978-0-9557009-9-6 | edition January 2009 | PDF | 390 pages | 2,16 mb
Publisher: CEPR | ISBN: 978-0-9557009-9-6 | edition January 2009 | PDF | 390 pages | 2,16 mb
The Centre for Economic Policy Research (CEPR), a registered charity founded in 1983 by Richard Portes, FBA, CBE, is a network of over 700 researchers based mainly in universities throughout Europe, who collaborate through the centre in research and its dissemination. CEPR's office is located in London but CEPR is a Think-Net drawing on academic research across Europe.
The Centre's mission is to promote research excellence and policy relevance in European economics. CEPR network of over 700 Research Fellows and Affiliates are based in over 237 different institutions in 28 countries (90% in the European Union. Because it draws on such a large network of researchers, CEPR is able to produce a wide range of research that reflects a broad spectrum of individual viewpoints and perspectives.
Vol.1 Contents
Preface
IntroductionSection 1 Why Did the Crisis Happen?
The relationship between the recent boom and the current delinquencies in subprime mortgages
Giovanni Dell'Ariccia, Deniz Igan and Luc Laeven
Why bank risk models failed
Avinash Persaud
Blame the models
Jon Danielsson
The subprime crisis: observations on the emerging debate
Charles Wyplosz
The subprime series, part 1: Financial crises are not going away
Stephen G. Cecchetti
The subprime series, part 2: Deposit insurance and the lender of last resort
Stephen G. Cecchetti
The subprime series, part 3: Why central banks should be financial supervisors
Stephen G. Cecchetti
The subprime series, part 4: Does well-designed monetary policy encourage risk- taking?
Stephen G. Cecchetti
The subprime crisis: Greenspan’s Legacy
Tito Boeri and Luigi Guiso
The impact of short-term interest rates on risk-taking: hard evidence
Vasso Ioannidou, Steven Ongena and Jose Luis Peydró
Why did bank supervision fail?
Guido Tabellini
The subprime crisis and credit risk transfer: something amiss
Luigi Spaventa
The crisis of 2007: some lessons from history
Michael D. Bordo
Reflections on the international dimensions and policy lessons of the US subprime crisis
Carmen ReinhartSection 2 How Is the Crisis Unfolding?
Federal Reserve policy actions in August 2007: frequently asked questions (updated)
Stephen G. Cecchetti
An extensive but benign crisis?
Tommaso Monacelli
Not (yet) a ‘Minsky moment’
Charles W. Calomiris
A B & B future for subprime borrowers?
Willem Buiter
Double counting 101: the useful distinction between inside and outside assets
Willem Buiter
Bagehot, central banking and the financial crisis
Xavier Vives
The financial crisis: why it may last
Angel Ubide
Fallout from the credit crunch
Dennis J. Snower
Four mega-dangers international financial markets face
Dennis J. Snower
Federal Reserve policy responses to the crisis of 2007–8: a summary
Stephen G. Cecchetti
While the ECB ponders, the Fed moves – and cleverly at that
Charles WyploszSection 3 What Can Be Done?
The subprime crisis: Who pays and what needs fixing
Marco Onado
Filling the information gap
Alberto Giovannini and Luigi Spaventa
Lessons from the North Atlantic financial crisis
Willem Buiter
Lessons from Northern Rock: banking and shadow banking
Willem Buiter
Lessons from Northern Rock: how to handle failure
Willem Buiter
Ratings agency reform
Richard Portes
How to avoid further credit and liquidity confidence crises
Guillermo de la Dehesa
The inappropriateness of financial regulation
Avinash Persaud
There is more to central banking than inflation targeting
Paul De Grauwe
Can monetary policy really be used to stabilize asset prices?
Katrin Assenmacher-Wesche and Stefan Gerlach
A missed opportunity for the Fed
Willem Buiter and Anne Sibert
The central bank as the market-maker of last resort: from lender of last resort to market-maker of last resort
Willem Buiter and Anne Sibert
Avoiding disorderly deleveraging
Luigi Spaventa
Chronology
Glossary
Vol.2 Contents
Preface
IntroductionSection 1: The spread of the crisis to the rest of the world
The first casualty of the crisis: Iceland
Jon Danielsson
Iceland: The future is in the EU
Philip Lane
Iceland faces the music
Gylfi Zoega
The collapse of Iceland’s banks: the predictable end of a non-viable business model
Willem Buiter and Anne Sibert:
The fallout from the global credit crisis: Contagion - emerging markets under stress
Helmut Reisen
From capital flow bonanza to financial crash
Carmen Reinhart and Vincent Reinhart
Rapid and large liquidity funding for emerging markets
Guilermo Calvo and Ruby Loo-Kung
Stock market wealth effects in emerging market countries
Heiko Hesse
The political economy of debt relief
Andreas Freytag and Gernot Pehnelt
India’s credit crunch conundrum
Arvind Subramanian
Preserving financial sector confidence, not monetary easing, is key
Arvind Subramanian
The folly of the central banks of Europe
Jonh Muellbauer
Crisis management tools for the euro-area
Daniel Gros and Stefano Micossi
A proposal on financial regulation in Europe for the next European Council
Carmine Di Noia
The European response to the crisis: Not quite there yet
Marco Pagano
Finance, market, globalisation: a plot against mankind?
Salvatore Rossi
Can Europe take care of its own financial crisis?
Daniel Gros
The financial crisis may hasten European integration but slow global banking
Avinash Persaud
A call for a European Financial Stability Fund
Daniel Gros and Stefano Micossi
Governance of banks
Luc Laeven and Ross Levine
Finance, redistribution, globalisation
Giuseppe Bertola and Anna Lo Prete
What Next for the Dollar? The Role of Foreigners
Kristin Forbes
Is the US too big to fail?
Carmen Reinhart and Vincent Reinhart
Can the IMF save the world?
Barry EichengreenSection 2: What is wrong with the traditional economic/financial viewpoint and models?
The financial meltdown is an academic crisis too
Richard Dale
European securitisation and the possible revival of financial innovation
John Kiff, Paul Mills, and Carolyne Spackman
The price of transparency
Marco Pagano
The Panglossian World of Finance
Daniel Cohen
What can be learned from the banking crisis
Hans-Werner Sinn
Do reputational concerns lead to reliable ratings?
Beatriz Mariano
The Financial Economists Roundtable’s statement on reforming the role of SROs in the securitisation process
Charles Goodhart
Liquidity risk and the current crisis
Lasse Heje Pedersen
How risk sensitivity led to the greatest financial crisis of modern times
Avinash Persaud
Transmission of liquidity shocks: Evidence from the 2007 subprime crisis
Nathaniel Frank, Brenda González-Hermosillo, and Heiko Hesse
The lender of last resort of the 21st century
Xavier Freixas and Bruno Parigi
Reason with the messenger; don’t shoot him: value accounting, risk management and financial system resilience
Avinash Persaud
Escaping from a Combined Liquidity Trap and Credit Crunch
Frank Heinemann
Complexity kills
Jon Danielsson
Will the credit crunch lead to recession?
Nicholas Bloom
The credit crunch may cause another great depression
Nicholas Bloom
The procyclical effects of Basel II
Rafael Repullo and Javier Suarez
Central banks’ function to maintain financial stability: An uncompleted task
Charles Goodhart
Let banks be banks, let investors be investors
Alberto Giovannini
Stormy Weather in the Credit Default Swap Market
Virginie Coutert and Mathieu Gex
Why does the spread between LIBOR and expected future policy rates persist, and should central banks do something about it?
Francesco GiavazziSection 3: The proper governmental response
Anatomy of the financial crisis
Barry Eichengreen
The subprime turmoil: What’s old, what’s new, and what’s next
Charles Calomiris
An international perspective on the US bailout
Romain Rancière
Not the end of capitalism
Erik Berglöf and Howard Rosenthal
The effectiveness of fiscal policy depends on the financing and monetary policy mix
Giancarlo Corsetti and Gernot Müller
Fiscal policy and the credit crunch: What will work?
Daniel Gros
Episode V: Expectations strike back
Micael Castanheira
Germany needs high wage settlements and a serious fiscal stimulus
Andrea Boltho and Wendy Carlin
Plan B
Luigi Zingales
Why Paulson is (maybe) right
Charles Wyplosz
A (mild) defence of TARP
Luigi Spaventa
The right alternative to Paulson's plan
Avinash Persaud
The Paulson Plan: A useful first step but nowhere near enough
Willem Buiter
From recapitalisation to restructuring and reforms
Viral Acharya
Why Paulson is wrong
Luigi Zingales
A matched preferred stock plan for government assistance
Charles Calomiris
An emerging consensus against the Paulson Plan: Government should force bank capital up, not just socialise the bad loans
Jeffrey Frankel
Banks’ losses and capital: The new version of the paradox of Achilles and the tortoise
Marco Onado
TARP2: A totally alternative relief programme
Ricardo Cesari
Involving European citizens in the benefits of the rescue plan: The political paradoxes of bank socialism
Tito Boeri
What is a reverse auction?
Marco Pagano
‘No recourse’ and ‘put options’: Estimating the ‘fair value’ of US mortgage assets
Daniel Gros
Bringing money markets back to life
Javier Suarez
The other part of the bailout: Pricing and evaluating the US and UK loan guarantees
Viral Acharya and Raghu Sundaram
The beginning of the end game…
Daniel Gros and Stefano Micossi
Financial crisis resolution: It’s all about burden-sharing
Charles Wyplosz
Is the euro area facing a credit crunch or a credit squeeze?
Guillermo de la Dehesa
Global financial crisis: How long? How deep?
Stijn Claessens, M Ayhan Kose and Marco Terrones
The cost of resolving financial crises
Luc Laeven
Financial crisis management: Lessons from Japan’s failure
Keiichiro Kobayashi
And now the Great Depression
Barry Eichengreen
Financial markets and a lender of last resort
Eric Hughson and Marc Weidenmier
Too many bankers?
Esther Duflo
Chronology
Glossary
