How did problems originating in one asset class in one country propagate internationally, sparking the Great Recession? A standard stylised explanation relies on the globalisation of the banking system, and has two parts.
From financial crisis to Great Recession: Evidence on the transmission role of banks
Shekhar Aiyar, 12 May 2011
Optimal Bank Capital
David Miles, Gilberto Marcheggiano, Jing Yang, 11 April 2011
Do we need big banks?
Harry Huizinga, Asli Demirgüç-Kunt, 18 March 2011
In recent years, many banks have reached enormous size both in absolute terms and relative to their national economies. By 2008:
Banks and capital markets: A two-way nexus
Biagio Bossone, 18 December 2010
Financial regulation is being rethought. One area where the conventional wisdom is being redrawn is the interaction of banks and capital markets. For years, banks and capital markets have been viewed as competing sources of financing (e.g. Jacklin 1987, Jacklin and Bhattacharya 1988, Diamond 1997, and Allen and Gale 1999 and 2002).
Banks and capital markets as a coevolving financial system
Fenghua Song, Anjan Thakor, 1 December 2010
At a time when financial regulation is being fundamentally rethought, the optimal configuration of banks and capital markets within a financial system and how each should be regulated have become centre-stage issue. Banks and capital markets are often viewed as competing sources of financing (e.g. Allen and Gale 1997, Boot and Thakor 1997, and Dewatripont and Maskin 1995).
Iceland’s special investigation: The plot thickens
Thorvaldur Gylfason, 30 April 2010
The recently published nine-volume, 2,400-page report from the Icelandic Parliament‘s Special Investigation Commission (SIC, appropriately pronounced sick) is not an attempt at whitewash as many had feared.
Who should decide on emergency liquidity assistance?
Jorge Ponce, 16 January 2010
Many countries are revising their institutions to deal with troubled banks. In the UK, the Labour Party believes that the current arrangement – the Tripartite Standing Committee constituted by the HM Treasury, the Bank of England, and the Financial Services Authority – is the best framework for regulating and supervising financial institutions and wants to strengthen it.
Oil Prices and bank profitability: Evidence from major oil-exporting countries in the Middle East and North Africa
Heiko Hesse, Tigran Poghosyan, 27 October 2009
The recent economic and financial crisis and the sharp fall in oil prices have hit hard many of the oil-exporting countries in the Middle East and North Africa (MENA).
Fiddling with accounting rules is not going to restore the banks to health
Harry Huizinga, Luc Laeven, 7 October 2009
The current global financial crisis has reinvigorated a debate on the effectiveness of the existing accounting and regulatory frameworks for banks. Questions abound, ranging from adequate capitalisation levels of banks to the boundaries of financial regulation (see Financial Stability Forum, 2008).
What explains the cost of remittances?
Thorsten Beck, Maria Soledad Martinez Peria, 28 September 2009
In 2008, remittances to developing countries reached $328 billion dollars, more than twice the amount of official aid and over half of foreign direct investment flows (World Bank, 2009).
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Do entrepreneurs matter?Becker, Hvide
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013
CEPR Policy Research
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí
- Does Supporting Passenger Railways Reduce Road Traffic Externalities?Lalive, Luechinger, Schmutzler
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood
- Austerity: Too Much of a Good Thing?Corsetti