Three Branches of Theories of Financial Crises
نویسندگان
چکیده
منابع مشابه
Three Branches of Theories of Financial Crises
In this paper, we review three branches of theoretical literature on financial crises. The first one deals with banking crises originating from coordination failures among bank creditors. The second one deals with frictions in credit and interbank markets due to problems of moral hazard and adverse selection. The third one deals with currency crises. We discuss the evolutions of these branches ...
متن کاملReview of Theories of Financial Crises
Diamond and Dybvig (1983) provide a framework for coherent analysis of this phenomenon. In their model, agents may suffer idiosyncratic short-term liquidity needs. Without banks, they would not be able to enjoy the fruits of long-term investments. By offering demand-deposit contracts, banks enable short-term consumers to enjoy those fruits. Banks rely on the fact that only a forecastable fracti...
متن کاملNber Working Paper Series Review of Theories of Financial Crises
In this paper, we review three branches of theoretical literature on financial crises. The first one deals with banking crises originating from coordination failures among bank creditors. The second one deals with frictions in credit and interbank markets due to problems of moral hazard and adverse selection. The third one deals with currency crises. We discuss the evolutions of these branches ...
متن کاملFinancial 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 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: Foundations and Trends® in Finance
سال: 2015
ISSN: 1567-2395,1567-2409
DOI: 10.1561/0500000049