Liquidity and Crises

NOTE EDITORE

Financial crises have been pervasive for many years. Their frequency in recent decades has been double that of the Bretton Woods Period (1945-1971) and the Gold Standard Era (1880-1993), comparable only to the period during the Great Depression. Nevertheless, the financial crisis that started in the summer of 2007 came as a great surprise to most people. What initially was seen as difficulties in the U.S. subprime mortgage market, rapidly escalated and spilled over first to financial markets and then to the real economy. The crisis changed the financial landscape worldwide and its full costs are yet to be evaluated. One important reason for the global impact of the 2007-2009 financial crisis was massive illiquidity in combination with an extreme exposure of many financial institutions to liquidity needs and market conditions. As a consequence, many financial instruments could not be traded anymore, investors ran on a variety of financial institutions particularly in wholesale markets, financial institutions and industrial firms started to sell assets at fire sale prices to raise cash, and central banks all over the world injected huge amounts of liquidity into financial systems. But what is liquidity and why is it so important for firms and financial institutions to command enough liquidity? This book brings together classic articles and recent contributions to this important field of research. It is divided into five parts. These are (i) liquidity and interbank markets; (ii) the public provision of liquidity and regulation; (iii) money, liquidity and asset prices; (iv) contagion effects; (v) financial crises and currency crises. The aim is to provide a comprehensive coverage of role of liquidity in financial crises.

SOMMARIO

1. - An Introduction to Liquidity and Crises2. - Preference Shocks, Liquidity and Central Bank Policy3. - Endogenous Liquidity in Asset Markets4. - Financial Intermediaries and Markets5. - Financial Fragility, Liquidity and Asset Prices6. - Interbank Market Integration under Asymmetric Information7. - Banks as Monitors of Other Banks: Evidence from the Overnight Federal Funds Markets8. - Private and Public Supply of Liquidity9. - Liquidity, Efficiency and Bank Bailouts10. - Financial Crises, Payments System Problem and Discount Window Lending11. - Liquidity, Risk Taking, and the Lender of Last Resort12. - Coordination Failures and the Lender of Last Resort: Was Bagehot Right after all?13. - Competition among Regulators and Credit Market Integration14. - Money in a Theory of Banking15. - Liquidity and Asset Prices16. - Collateral Constraints in a Monetary Economy17. - Inefficient Credit Booms18. - Financial Contagion through Capital Connections: A Model of the Origin and Spread of Bank Panics19. - Information Contagion and Bank Herding20. - Cash-in-the-market Pricing and Optimal Resolution of Bank Failures21. - Credit Risk Transfer and Contagion22. - Estimating Bilateral Exposures in the German Interbank Market: Is there a Danger of Contagion?23. - Asset Market Linkages in Crisis Periods24. - Strategic Complementarities and the Twin Crises25. - Inefficient Foreign Borrowing: A Dual-and-Common-Agency Perspective26. - Exchange Rate Volatility and the Credit Channel in Emerging Markets: A "Vertical" Analysis

AUTORE

Franklin Allen is the Nippon Life Professor of Finance and Professor of Economics at the Wharton School of the University of Pennsylvania. He has been on the faculty since 1980. He is currently Co-Director of the Wharton Financial Institutions Center. He is a past President of the American Finance Association. Elena Carletti is Professor of Economics at the European University Institute and Joint Chair of the Economics Department and Robert Schuman Center for Advanced Studies. Jan Pieter Krahnen is Chair of Corporate Finance at Johann Wolfgang Goethe-University Frankfurt. Marcel Tyrell is Professor of Entrepreneurship & Finance at Zeppelin University, Friedrichshafen

ALTRE INFORMAZIONI

• Condizione: Nuovo
• ISBN: 9780195390704
• Dimensioni: 188 x 50.8 x 257 mm Ø 1386 gr
• Formato: Copertina rigida
• Illustration Notes: 59 line drawings
• Pagine Arabe: 720