This paper makes three contributions. First, I report information on the size of the Japanese financial crisis. Drawing principally on work by Fukao (2003) and Doi and Hoshi (2003) I estimate that the current taxpayer liability for losses incurred but yet to be recognized is likely to be at least 24% of GDP. Second, I explain why it has been so difficult to end the crisis. Third, I sketch the l...

Many of the origins of the recent financial crisis were in the United States, beginning with subprime mortgages and mortgage securities. As the crisis spread globally, few market participants or regulatory authorities saw it coming, and all underestimated its severity. In the United States, the crisis has sparked many proposals to address its perceived causes and prevent a recurrence. Proposals...

1. Introduction Unlike other crisis-hit developing countries (Mexico, Korea, Thailand and Brazil) known by their large-scale utilization of foreign capital, China weathered the storm in 1997 safe and sound. However, some analysts said that China would have involved itself into the crisis if the Asian financial crisis came two years later. Many academic papers like Huang and Yang (1998) attribut...

In this paper we try to analyze the link between some industrial policies in South Korea and the 1997 ̄nancial crisis. We argue that while the industrial policies have greatly promoted the development of many local industries, they also have encouraged local ̄rms to get over-optimistic, to over-invest, and to over-produce. That increases the risks the ̄rms are facing. When a bad time occurs, ma...

Financial regulatory reform was recently signed into law by President Obama, as the United States continues to emerge from one of the most devastating financial crisis in its history. While reform was needed, there is much debate over how to implement a stronger regulatory framework that will underpin the financial ecosystem. The recent crisis exposed the information asymmetry between regulator...

The paper studies the statistical correlation between the return on assets and some measures of financial balance. The research relies on the assumptions that the financial balance influences most of the indicators of performances of a company. Therefore, we chose the return on assets as dependent variable, as it represents the final result of the company’s business. As independent variables, m...

The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis. Following this methodological perspective we introduce here the Accounting Network, i.e. the network we can extract through vector similarities techniques f...

The recent pronouncement by Sandy Weill, the former Chairman and CEO of Citigroup, that the separation between commercial banking and securities underwriting should be reinstituted has reignited the debate about the role of bank deregulation as a cause of the subprime crisis. In particular, Mr. Weill’s comments have been taken as evidence that the 1999 repeal of the Glass-Steagall Act, containe...