Banking Crises: Perspectives from The New Palgrave Dictionary

365 Pages·2016·3.295 MB·English

by  Garett Jones (eds.)

Banking Crises
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Banking Crises
Perspectives from
The New Palgrave Dictionary
Edited by
Garett Jones
George Mason University,USA
Selection,prefaceandeditorialmatterrGarettJones2016
Softcoverreprintofthehardcover1stedition2016978-1-137-55378-2
AllarticlesfirstpublishedinTheNewPalgraveDictionaryofEconomics,2ndEdition
EditedbyStevenN.DurlaufandLawrenceE.Blume
ineightvolumes,2008
orTheNewPalgrave:ADictionaryofEconomics
EditedbyJohnEatwell,MurrayMilgateandPeterNewman
infourvolumes,1987
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Contents
List of Figures vii FederalReserve System 94
DONALDD.HESTER
List of Tables ix
gold standard 108
Preface x
LAWRENCEH.OFFICER
List of Contributors xiii Greekcrisis inperspective:
Origins, effects and ways-out 119
Bagehot,Walter(1826–1877) 01
NICOSCHRISTODOULAKIS
ASABRIGGS
GreatDepression 144
Bank ofEngland 05
PETERTEMIN
CHARLESA.E.GOODHART
GreatDepression,monetary and
bankingcrises 18
financialforcesin 154
CHARLESW.CALOMIRIS
SATYAJITCHATTERJEEANDP.DEANCORBAE
bankingindustry 25
InternationalMonetary Fund 158
DARIOFOCARELLIAND
BRETTHOUSE,DAVIDVINESAND
ALBERTOFRANCOPOZZOLO
W.MAXCORDEN
bubbles 28
international monetary
MARKUSK.BRUNNERMEIER
institutions 192
bubblesinhistory 37 STANLEYW.BLACK
CHARLESP.KINDLEBERGER
Kindleberger,Charles P.
capitalcontrols 39 (1910–2003) 201
KRISTINJ.FORBES PETERTEMIN
Credit Crunch Chronology: laboratoryfinancialmarkets 204
April 2007–September2009 44 DANIELFRIEDMAN
THESTATESMAN’SYEARBOOKTEAM
Law, John(1671–1729) 211
credit rating agencies 70 MICHAELD.BORDO
JOELSHAPIRO
LehmanBrothersbankruptcy,
currencycrises 75 whatlessons can be drawn? 213
GRACIELALAURAKAMINSKY THOMASJ.FITZPATRICKIVAND
JAMESB.THOMSON
currencycrisesmodels 79
CRAIGBURNSIDE,MARTINEICHENBAUM liquiditytrap 221
ANDSERGIOREBELO GAUTIB.EGGERTSSON
euro zone crisis 2010 84 Minskycrisis 230
DANIELGROSANDCINZIAALCIDI L.RANDALLWRAY
vi Contents
New Deal 241 speculative bubbles 316
PRICEV.FISHBACK MIGUELA.IRAOLAANDMANUELS.SANTOS
quantitative easing by themajor SouthSea bubble 321
westerncentralbanks during HANS-JOACHIMVOTH
theglobalfinancialcrisis 251
J.ASHWORTH subprime mortgagecrisis,the 324
CHRISTOPHERL.FOOTEAND
Run onNorthernRock,the 271 PAULS.WILLEN
CHARLESA.E.GOODHART
tulipmania 337
shadow banking:areview of PETERGARBER
theliterature 282
TOBIASADRIANANDADAMB.ASHCRAFT INDEX 341
List of Figures
euro zone crisis 2010
Daniel Grosand Cinzia Alcidi
Fig.1. House prices:price-to-rent ratios.
Fig.2. Investmentinconstruction%of GDP.
Greekcrisis inperspective:Origins, effects andways-out
Nicos Christodoulakis
Fig.1. Greekpublic Debt as%GDPfor the period 1980–2011.
Fig. 2. Primary public expenditure and total revenues (incl. privatisation proceeds)
as %GDP in Greece, 1980–2011. Election years denoted by (E). Dotted line denotes
public receiptsnet ofprivatizations.
Fig.3. CurrentAccountinGreeceas%ofGDP, 1980–2011.
Fig.4. Development ofunit labour costs intheEurozone2000–10.
Fig.5. Quality indicators affectingthe economicclimate.
Fig.6. FDIinflowstoGreeceexpressed aspercent ofGDP.
Fig. 7. Growth rate correlations with public consumption (Lhs) and public invest-
ment (Rhs)expressed aspercent ofGDP.
Fig.8. Comparison ofbimonthlytaxrevenuesinpre-election periods.
Fig.9. Proceedsfromprivatizations.
Fig.10.The three alternativesforrecovery.
Fig.11.Alternative pathsforpublic debtas%ofGDP.
Great Depression
Peter Temin
Fig.1. Industrial production,1920–1939.
Fig.2. Wholesaleprices, 1924–1939.
laboratoryfinancialmarkets
Daniel Friedman
Fig.1. Abubble andcrash inthe laboratory.
liquiditytrap
Gauti B.Eggertsson
Fig. 1. Response of the nominal interest rate, inflation and the output gap toa shock
that lastsfor15 quarters.
viii ListofFigures
quantitative easing by the major western centralbanksduring the global financial crisis
J.Ashworth
Fig.1. Centralbankshort-terminterest rates, %.
Fig.2. US 3-month LIBOR-OISspread, %.
Fig.3. Centralbankbalancesheets, %ofGDP.
Fig.4. Main QE transmission channels.
Fig.5. Standard& Poors 500 stock market index.
Fig.6. GDP growthinthe major Westerneconomies, %change y/y.
Fig. 7. US 10-year inflation expectations amongst investors (zero-coupon bond
yield),%.
Fig.8. Average earningsgrowthUS and UK, %change y/y.
Run onNorthern Rock, the
Charles A.E.Goodhart
Fig. 1. Northern Rock: balance sheet growth and liability structure – June 1998–June
2007.
Fig.2. Northern Rockshare price andFTSEindex, 1997–2007(monthly).
Fig.3. The supervision ofNorthern Rock: lessons learned.
Fig.4. UKhouseprices,seasonally adjusted, 2000–2010.
shadow banking: areview ofthe literature
Tobias Adrian andAdam B.Ashcraft
Fig.1. Shadow liabilitiesbysector.
Fig.2. Creditandmaturity transformation.
Fig.3. The shadow creditintermediation process.
South Seabubble
Hans-Joachim Voth
Fig.1. Share price ofmajor English companies, 1718–22.
List of Tables
euro zone crisis 2010
Daniel Grosand Cinzia Alcidi
Table 1. Leverage:eurozone versusUSA.
Table 2. Leverageforeuro zone selectedcountriesand sector break-down.
Great Depression
Peter Temin
Table 1. Industrial unemploymentrates, 1921–1938.
Table 2. Standarddeviationofchanges in21 gold-standard countries,1930–1932.
quantitative easing by the major western centralbanksduring the global financial crisis
J.Ashworth
Table 1. Tiny multipliers (private non-financial corporations and the household
sector),%ch.
subprime mortgagecrisis, the
Christopher L. Foote and PaulS.Willen
Table 1. Did payment increases cause the crisis? Sample includes subprime first-lien
mortgages in McDash/LPS dataset on which lenders initiated foreclosure proceed-
ings from2007to2010.All loans originatedafter 2005.