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General Equilibrium Effects and Voting into a Crisis

Beilharz, Hans-Jörg; Gersbach, Hans - C.E.P.R. Discussion Papers - 2004

We show that in democracies insufficient recognition of general equilibrium effects can lead to a crisis. We consider a two-sector economy in which a majoritarian political process determines governmental regulation in one sector: a minimum nominal wage. If voters recognize general equilibrium...

Persistent link: https://www.econbiz.de/10005504724

A Theory of Slow-Moving Capital and Contagion

Acharya, Viral V; Shin, Hyun Song; Yorulmazer, Tanju - C.E.P.R. Discussion Papers - 2009

Fire sales that occur during crises beg the question of why sufficient outside capital does not move in quickly to take …

Persistent link: https://www.econbiz.de/10004980209

A proposal for the resolution of systemically important assets and liabilities: The case of the repo market

Acharya, Viral V; Öncü, T Sabri - C.E.P.R. Discussion Papers - 2012

One of the several regulatory failures behind the global financial crisis that started in 2007 has been the regulatory focus on individual, rather than systemic, risk of financial institutions. Focusing on systemically important assets and liabilities (SIALs) rather than individual financial...

Persistent link: https://www.econbiz.de/10011083584

Banking and the Macroeconomy in China: A Banking Crisis Deferred?

Le, Vo Phuong Mai; Matthews, Kent; Meenagh, David; … - C.E.P.R. Discussion Papers - 2013

The downturn in the world economy following the global banking crisis has left the Chinese economy relatively unscathed. This paper develops a model of the Chinese economy using a DSGE framework with a banking sector to shed light on this episode. It differs from other applications in the use of...

Persistent link: https://www.econbiz.de/10011084147

Monetarism rides again? US monetary policy in a world of Quantitative Easing

Le, Vo Phuong Mai; Meenagh, David; Minford, Patrick - C.E.P.R. Discussion Papers - 2014

This paper gives money a role in providing cheap collateral in a model of banking; this means that, besides the Taylor Rule, monetary policy can affect the risk-premium on bank lending to firms by varying the supply of M0 in open market operations, so that even when the zero bound prevails...

Persistent link: https://www.econbiz.de/10011084208

The Great Leveraging

Taylor, Alan M. - C.E.P.R. Discussion Papers - 2012

What can history can tell us about the relationship between the banking system, financial crises, the global economy …

Persistent link: https://www.econbiz.de/10011084609

How Private Creditors Fared in Emerging Debt Markets, 1970-2000

Klingen, Christoph; Weder di Mauro, Beatrice; … - C.E.P.R. Discussion Papers - 2004

We estimate ex post returns to emerging market debt by combining secondary-market prices with observed flows based on World Bank data. From 1970–2000, returns averaged 9% per annum, about the same as returns on a ten-year US treasury bond. This reflects the combined effect of the 1980s debt...

Persistent link: https://www.econbiz.de/10005067551

Is Aggregation a Problem for Sovereign Debt Restructuring?

Eichengreen, Barry; Mody, Ashoka - C.E.P.R. Discussion Papers - 2003

Reform of the mechanisms and procedures through which problems of sovereign debt sustainability are resolved is at the centre of the effort to make the international financial system less crisis prone. The purported difficulty of coordinating creditors holding distinct bond issues provides one...

Persistent link: https://www.econbiz.de/10005661785

Fire Sales, Foreign Entry and Bank Liquidity

Acharya, Viral V; Shin, Hyun Song; Yorulmazer, Tanju - C.E.P.R. Discussion Papers - 2007

Bank liquidity is a crucial determinant of the severity of banking crises. In this paper, we consider the effect of … fire sales and foreign entry on banks' ex ante choice of liquid asset holdings, and the ex post resolution of crises. In a …, foreign entry reduces this incentive. We exhibit international evidence on foreign entry following crises and on banks' ex …

Persistent link: https://www.econbiz.de/10005123848

Explaining Forward Exchange Bias .... Intra-day

Lyons, Richard K; Rose, Andrew K - C.E.P.R. Discussion Papers - 1994

Intra-day interest rates are zero. Consequently, a foreign exchange dealer can short a vulnerable currency in the morning, close this position in the afternoon, and never face an interest cost. This tactic might seem especially attractive in times of crisis, since it suggests an immunity to the...

Persistent link: https://www.econbiz.de/10005124023