Found 408 article(s) in category 'Q3: Financial Crisis?'

HOW DO WE PREVENT THE NEXT FINANCIAL CRISIS?

The posts collected here explore the causes of the global financial crisis and its short- and long-term consequences. They include a multitude of proposals for preventing and mitigating financial crises in the future.

The Eurozone Must Reform or Die

The Eurozone Must Reform or Die. Kenneth Rogoff, June 14, 2017, Opinion, “With the election of a reform-minded centrist president in France and the re-election of German Chancellor Angela Merkel seeming ever more likely, is there hope for the stalled single-currency project in Europe? Perhaps, but another decade of slow growth, punctuated by periodic debt-related convulsions, still looks more likely. With a determined move toward fiscal and banking union, things could be much better. But, in the absence of policies to strengthen stability and sustainability, the chances of an eventual collapse are much greater.Link

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Appraising the Economic Potential of Panama Policy Recommendations for Sustainable and Inclusive Growth

Appraising the Economic Potential of Panama Policy Recommendations for Sustainable and Inclusive Growth. Ricardo Hausmann, 2017, Paper, “This report aims to summarize the main findings of the project as gathered by the three baseline documents, and frame them within a coherent set of policy recommendations that can help Panama to maintain their growth momentum in time and make it more inclusive. Three elements stand out as cornerstones of our proposal: (i) attracting and retaining qualified human capital; (ii) maximizing the diffusion of know-how and knowledge spillovers, and (iii) leveraging on public-private dialog to tackle coordination problems that are hindering economic activity outside the Panama-Colón axis.Link

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What history tells us about Trump’s budget fantasy

What history tells us about Trump’s budget fantasy. Lawrence Summers, May 30, 2017, Opinion, “At the risk of beating a dead horse, here are some thoughts on the Trump administration’s 3 percent growth forecast. Zero interest rates seemed inconceivable 15 years ago, and yet they happened. Almost no one forecast the productivity boom that took place in the United States between 1995 and 2005 or the magnitude of the 2008 financial crisis. So any statement that a given forecast is inconceivable is unwarranted.Link

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Lessons Unlearned? Corporate Debt in Emerging Markets

Lessons Unlearned? Corporate Debt in Emerging Markets. Laura Alfaro, May 2017, Paper, “This paper documents a set of stylized facts about leverage and financial fragility in the nonfinancial corporate sector in emerging markets since the Global Financial Crisis (GFC). Corporate debt vulnerability indicators prior to the Asian Financial Crisis (AFC) attributed to corporate financial roots provide a benchmark for comparison. The firm-level data suggest that emerging markets post-GFC have lower leverage ratios than the five Asian crisis countries (Asian Five) in the run-up to the AFC. However, a broader set of emerging market countries show weaker liquidity, solvency, and profitability indicators.Link

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The Case Against Subsidizing Housing Debt

The Case Against Subsidizing Housing Debt. Jeffrey Frankel, May 29, 2017, Opinion, “At the end of the first quarter, according to the Federal Reserve Bank of New York, American consumer debt for the first time exceeded its previous peak (in dollars), reached in the third quarter of 2008, just as the global financial crisis erupted. Although car loans and student debt have been rising especially rapidly, housing debt remains more than two-thirds of the $12.7 trillion total.Link

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Harvard’s Hausmann Asks JPMorgan to Cut Venezuela From Index

Harvard’s Hausmann Asks JPMorgan to Cut Venezuela From Index. Ricardo Hausmann, May 26, 2017, Video, “Harvard University economist Ricardo Hausmann is calling on JPMorgan Chase & Co. to remove Venezuela from its bond indexes so that investors whose portfolios track the gauges aren’t compelled to buy notes issued by a government accused of human-rights violations.Link

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Monetary Policy in a Low Interest Rate World

Monetary Policy in a Low Interest Rate World. Kenneth Rogoff, May 19, 2017, Paper, “How should monetary policy be conducted if trend global real interest rates continue to remain below historical norms for another decade or two? And how, especially, might monetary authorities prepare for another deep recession? Whether or not the world has…Link

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Corporate Sustainability Disclosure and Financial Performance

Corporate Sustainability Disclosure and Financial Performance. George Serafeim, 2017, Paper, “Corporate environmental and social reporting lacks the comparability across companies that is a characteristic of financial information. To address this weakness, Norges Bank Investment Management (NBIM) created analytical frameworks to measure the quality and scope of reporting relating to three focus areas: climate change, water and children’s rights. By translating information published by a global set of companies into standardized data, NBIM has constructed a dataset that can be used for analyzing and comparing companies across time and within sectors.” Link

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Understanding the Political Economy of the Eurozone Crisis

Understanding the Political Economy of the Eurozone Crisis. Jeffry Frieden, 2017, Paper, “The Eurozone crisis constitutes a grave challenge to European integration. This article presents an overview of the causes of the crisis and analyzes why it has been so difficult to resolve. We focus on how responses to the crisis were shaped by distributive conflicts both among and within countries. On the international level, debtor and creditor countries have fought over the distribution of responsibility for the accumulated debt; countries with current account surpluses and deficits have fought over who should implement the policies necessary to reduce the current account imbalances. Within countries, interest groups have fought to shift the costs of crisis resolution away from themselves.Link

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