Financial Crises: Theory and Evidence
نویسندگان
چکیده
منابع مشابه
Financial Crises and Political Crises∗
The simultaneous determination of financial default and political crises is studied in an open economy model. Political crises accompany default in equilibrium because of an information transmission conflict between the government and the public. Multiple equilibria are possible: if foreign lenders are pessimistic about the country’s stability, they demand a high interest on the debt, exacerbat...
متن کاملDomestic Bank Regulation and Financial Crises: Theory and Empirical Evidence from East Asia Comment
Different from many other branches of international economics, the literature on currency attacks and financial meltdown cannot quite rely at least not for the time being on a “NeoClassical” theoretical core, that is, on a widely accepted, formally elegant paradigm linking pervasive normative implications to rigorous behavioral microfoundations. But in the absence of a “Neo-Classical” synthesis...
متن کاملAppendix to "Financial Crises and Political Crises"
PBE Type i: Neither default nor political crisis If V ≤ χL, the costs of default are always larger than the costs of servicing the debt even for the benevolent government. Then in equilibrium, the government proposes to service the debt, which is accepted by the representative agent. Hence the debt is repaid and political crisis is avoided. Neither the benevolent government nor the self interes...
متن کاملA Bad - Asset Theory of Financial Crises ∗ ( Incomplete and preliminary )
We propose a simple model of financial crises, which may be useful for the unified analysis of macro and financial policies implemented during the 2008–2009 financial crisis. A financial crisis is modeled as a disappearance of inside money due to the lemon problem à la Akerlof (1970), in a simplistic variant of Lucas and Stokey’s (1987) Cash-in-Advance economy, where both cash and capital stock...
متن کاملPsychology, Financial Decision Making, and Financial Crises.
It is understandable that people ask how the current financial crisis could happen. As the market actors appear irrational, it is also understandable that people—lay people and experts alike—believe that psychological factors play a decisive role. Is there evidence for such a role, and what is the evidence? This monograph reviews, evaluates, and discusses research—primarily psychological resear...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2009
ISSN: 1556-5068
DOI: 10.2139/ssrn.1422715