1 / 10

HISTORY AND CHARACTERISITCS OF FINANCIAL CRISES: Discussion Tassos Malliaris

HISTORY AND CHARACTERISITCS OF FINANCIAL CRISES: Discussion Tassos Malliaris. The 10 th Biennial Athenian Policy Forum Conference at the Duetsche Bundesbank, Frankfurt, July 28-31, 2010. Two Papers. Financial Regulatory Reforms to Cope With the Crisis in the US and the EU ( Zestos )

fleta
Télécharger la présentation

HISTORY AND CHARACTERISITCS OF FINANCIAL CRISES: Discussion Tassos Malliaris

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HISTORY AND CHARACTERISITCS OF FINANCIAL CRISES: DiscussionTassosMalliaris The 10th Biennial Athenian Policy Forum Conference at the Duetsche Bundesbank, Frankfurt, July 28-31, 2010

  2. Two Papers • Financial Regulatory Reforms to Cope With the Crisis in the US and the EU (Zestos) • A Descriptive Analysis of the 2007 U.S. Financial Crisis: Its Origin, Problem, and Solution (Choi)

  3. The Zestos Paper • Comprehensive • Begins with Origins of Banking in 1850’s: National Bank Act of 1863 • Emphasis on Glass-Steagall Act of 1933 • Role of Gramm-Leach-Bliley Act of 1999

  4. The Zestos Story • Deregulation • Easy Monetary Policies • Housing Boom • Financial Innovations • Crisis begins in the U.S. then EU • 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act: U.S. Regulation • EU to Follow

  5. Discussion • Well Written • Focused on Regulation, Deregulation, New Regulation • Also Focused on U.S. vs. EU • Similar Crisis but Dissimilar Developments

  6. Discussion • Need to Contrast a Dynamically Evolving Economy vs. Static Regulation • Need to Address Regulatory Arbitrage Between U.S. and EU • Optimal Regulation, Financial Innovation and Economic Growth

  7. The Choi Paper 1. The Origin of the 2007 U.S. Financial Crisis 2. The Problem with Policies Instituted - identifies the players : The Treasury, Fed, FDIC - describes 3 major policies: Lehman, Increasing Capital and AIG 3.The Possible Solutions to the Problem - The Small Business Administration Loans - Better Management of Securitization - Elimination of Mortgage-Related Speculation - Formation of Better Regulatory Structure

  8. Discussion • Very Detailed and Informative • What is Presented is Presented Well • “Too Big to Fail” by Andrew Ross Sorkin • Emphasis on Events vs. Personalities: Hank Paulson, Ben Bernanke, Jamie Dimon, Richard Fuld, Tim Geithner and several others

  9. Discussion • In a High Frequency Analysis What is “Signal” and What is “Noise”? • If There is a “Signal” is There Also a Theory? • Theory Plays a Double Role: It is Both Lens and Also a Blinder

  10. Discussion • Lesson Learned From Major Crises: Act Quickly, Decisively and Forcefully • The Need to Recapitalize • “If to do Were as Easy as to Know What Were Good to do, Chapels would have Been Churches and Poor Men’s Cottages Princes’ Palaces” Merchant of Venice • Lender of Last Resort

More Related