Found 469 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 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

Tags: , , , ,

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

Tags: , , ,

Another Recession Is Looming

Another Recession Is Looming. Martin Feldstein, September 27, 2018, Opinion, “Ten years after the Great Recession’s onset, another long, deep downturn may soon roil the U.S. economy. The high level of asset prices today mirrors the earlier trend in house prices that preceded the 2008 crash; both mispricings reflect long periods of very low real interest rates caused by Federal Reserve policy. Now that interest rates are rising, equity prices will fall, dragging down household wealth, consumer spending and economic activity.Link

Tags: , , ,

Challenges Ahead

Challenges Ahead. Ricardo Hausmann, 2018, Book Chapter, “Sovereign debt ratios in advanced and emerging economies have grown to near record highs, while in low-income countries, debt levels have been gradually building since the debt relief of the early 2000s. As global monetary conditions tighten, the burden of debt will grow, and rollover risks will increase. And with a more fragmented creditor base, timely and orderly restructurings may become harder to achieve. This chapter will explore these challenges and consider which policies might enhance crisis prevention and strengthen crisis resolution. It will also consider the extent to which these objectives can be pursued by individual countries, and where multilateral action may be required to improve the international architecture.Link

Tags: , , , , ,

This Market Has All The Signs Of A Bubble

This Market Has All The Signs Of A Bubble. Andrei Shleifer, September 24, 2018, Audio, “Andrei Shleifer, Professor of Economics at Harvard University, discusses his new book, “A Crisis of Beliefs: Investor Psychology and Financial Fragility,” and whether we are prepared for another financial crisis. Hosted by Pimm Fox and Lisa Abramowicz.Link

 

Tags: , , , ,

How Close Are We To Another Financial Collapse?

How Close Are We To Another Financial Collapse? Nancy Koehn, September 19, 2018, Audio, “This month marks the 10 year anniversary of our financial system buckling under the weight of big lending. The crash set off the worst economic crisis since the Great Depression, with millions of Americans losing their homes, jobs and savings. While the debate is still going on as to whether policymakers did enough to prevent this meltdown from being even worse, are our policy makers doing enough right now to keep another crisis from happening?Link

Tags: , , ,

Harvard’s Rogoff Says Next Global Crisis to Come From China

Harvard’s Rogoff Says Next Global Crisis to Come From China. Kenneth Rogoff, September 12, 2018, Video, “Harvard Professor Kenneth Rogoff discusses the risks posed by emerging markets and warns that the next global crisis may potentially come from China. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg).Link

 

Tags: , , , , , , , ,

Responding to the Global Financial Crisis, What We Did and Why We Did It

Responding to the Global Financial Crisis, What We Did and Why We Did It – The Fiscal Response to the Great Recession: Steps Taken, Paths Rejected, and Lessons for Next Time. Jason Furman, September 11, 2018, Paper, “The fiscal response to the Great Recession started when President Bush signed the Economic Stimulus Act of 2008 on February 13, 2008 and finished when the payroll tax cut enacted under President Obama expired at the end of 2012. Congress enacted at least 18 different laws that explicitly included discretionary fiscal stimulus totaling over $1.5 trillion during those five years, with about half of that coming from the American Recovery and Reinvestment Act signed into law by Obama on February 17th 2009.2LInk

Tags: , , , , , ,