The First Credit Market Turmoil of the 21st Century

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Format: Hardcover
Pub. Date: 2009-11-04
Publisher(s): World Scientific Pub Co Inc
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Summary

Since the summer of 2007, credit markets in almost all industrial countries have been in substantial turmoil and this has become the focus of intense policy debates. The papers in this volume are contributed by the world's leading financial experts and constitute a thorough examination of the first credit market turmoil of the 21st Century. They provide an overview of the main causes, transmission mechanisms and economic implications of what by now has become a major systemic financial crisis. They assess the most important policy considerations and conclude about how to stabilize financial systems, attenuate repercussions on the real economy and shape future regulatory structures. The analyses, conclusions, and recommendations can be expected to influence both public and private policies to mitigate, if not prevent, such crises in the future.

Table of Contents

Prefacep. ix
Acknowledgementsp. xi
Special Addressesp. 1
Central Banks and the Financial Turmoilp. 3
The Implications of the Credit Crisis for Public Policyp. 11
Where Are Our Leaders?p. 23
Trust and Financial Marketsp. 29
What Happened, Where?p. 39
A View of the U.S. Subprime Crisisp. 41
What Has Happened in Europe? Monetary Policy, Lending Cycles, Banking Competition, Risk-Taking, and Regulationp. 67
The Subprime Crisis Effects in the Rest of the Worldp. 87
How Serious is the Damage?p. 101
Bank Failures: The Limitations of Risk Modelingp. 103
Comments: How Serious is the Damage?p. 125
Why did It Go Undetected/Underestimated for So Long?p. 139
Cliff Risk and the Credit Crisisp. 141
The Credit Crunch of 2007: What Went Wrong? Why? What Lessons Can be Learned?p. 161
Overdependence on Credit Ratings was a Primary Cause of the Crisisp. 175
Experience with Crisis Managementp. 193
Liquidity Management Under Market Turmoil: Experience of the European Central Bank in the First Year of the 2007-2008 Financial Market Crisisp. 195
Crisis Management and Financial Stability: Some Lessons from the United Kingdomp. 229
Implications for Basel II and Bank Capital Regulationp. 239
Risk Management Failures During the Financial Crisisp. 241
A Supervisor's View of the Current Financial Turmoilp. 267
The Subprime Crisis: Lessons About Market Disciplinep. 281
Comments: Implications for Bank Capital Standards/Regulationp. 305
Implications for Regulation of Financial Markets and Instrumentsp. 309
Implications of the Crisis for Regulationp. 311
The Seven Deadly Frictions of Subprime Mortgage Credit Securitizationp. 325
Policy Panel: Where to From Here?p. 345
Where to From Here?: Lessons for Research, Policy and the Industryp. 347
Tarp Version 1: A Turning Point in Crisis Managementp. 353
Financial Crises: Seeing Patterns, Limiting Risksp. 367
Addressing the Credit Market Turmoil of 2007-08p. 371
Where to From Here?p. 377
Conference Agendap. 383
Indexp. 389
Table of Contents provided by Ingram. All Rights Reserved.

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