Found 475 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.

Stock Market Short-Termism’s Impact

Stock Market Short-Termism’s Impact. Mark Roe, December 2018, Paper, “Stock-market–driven short-termism is crippling the American economy, according to legal, judicial, and media analyses. Firms forgo the R&D they need, cut capital spending, and buy back their own stock so feverishly that they starve themselves of cash. The stock market is the primary cause: directors and executives cannot manage for the long term when their shareholders furiously trade their company’s stock, they cannot make long-term investments when stockholders demand to see profits on this quarter’s financial statements, they cannot even strategize about the long term when shareholder activists demand immediate results, and they cannot keep the cash to invest in their future when stock market pressure drains away that cash in stock buybacks. This doomsday version of the stock-market–driven short-termism argument entails economy-wide predictions that have not been well-examined for their severity and accuracy.Link

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The Biggest Emerging Market Debt Problem Is in America

The Biggest Emerging Market Debt Problem Is in America. Carmen Reinhart, December 20, 2018, Opinion, “A decade after the subprime bubble burst, a new one seems to be taking its place in the market for corporate collateralized loan obligations. A world economy geared toward increasing the supply of financial assets has hooked market participants and policymakers alike into a global game of Whac-A-Mole.Link

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Europe in ‘more trouble’ than the U.S. 10 years after great recession

Europe in ‘more trouble’ than the U.S. 10 years after great recession. Andrei Shleifer, December 4, 2018, Video, “There are signs of fragility in the economy, but Harvard Professor Andrei Shleifer the U.S. is better off today than it was in 2008. He spoke with Yahoo Finance’s Alexis Christoforous about his new book, ‘A Crisis of Beliefs: Investor Psychology and Financial Fragility’Link

 

 

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Famed Harvard economist warns of Brexit spillover from clash

Famed Harvard economist warns of Brexit spillover from clash. Martin Feldstein, November 15, 2018, Video, “The resignations of some members of British Prime Minister Theresa May’s government Opens a New Window. and calls Thursday for a no-confidence vote over a proposed Brexit deal hammered the British pound and European stock markets.Link

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The Crisis Next Time: What We Should Have Learned From 2008

The Crisis Next Time: What We Should Have Learned From 2008. Carmen Reinhart, November/December 2018, Paper, “At the turn of this century, most economists in the developed world believed that major economic disasters were a thing of the past, or at least relegated to volatile emerging markets. Financial systems in rich countries, the thinking went, were too sophisticated to simply collapse. Markets were capable of regulating themselves. Policymakers had tamed the business cycle. Recessions would remain short, shallow, and rare.Link

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Analyzing Inter-State Negotiations in the Eurozone Crisis and Beyond

Analyzing Inter-State Negotiations in the Eurozone Crisis and Beyond. Jeffry Frieden, October 4, 2018, Paper, “The analysis of relations among the member states of the European Union requires a clear understanding of many aspects of these complex interactions. This conclusion to the special issue highlights the principal analytical issues raised by the study of the Eurozone crisis, in the light of existing theory and informed by the empirical analyses assembled by this project. Analysis starts with an estimate of the «national preferences» of the governments involved, based on their domestic socioeconomic and political conditions and institutions.Link

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The curiously varied impact of recessions on political stability: New evidence

The curiously varied impact of recessions on political stability: New evidence. Nathan Nunn, September 29, 2018, “Cultural values and beliefs have an impact on social and economic development, but the interplay between culture and political institutions is still not well understood. This column examines the effect of trust on political stability in democratic and non-democratic regimes, specifically in the face of severe economic downturns. It finds that democratic regimes with high levels of trust are much less likely to experience leader turnover than low-trust countries, while there is no effect among non-democracies, and that countries with higher levels of trust experience faster economic growth in the years immediately following a recession.Link

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