Questions tagged [financial-crises]
The financial-crises tag has no usage guidance.
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what is the process of selling a loan/mortgage?
i was doing some research on the 2008 financial crisis and the term "sold mortgages" and "bundled up mortgages" keeping appearing. i'm relatively new to this subject so i cant ...
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A question about real value of assets of firm when price level decreases
I am a beginner at economics and am reading Mishkin's famous book The Economics of Money, Banking and Financial Markets(eleventh edition). In chapter 12, Page 271, when the author analyzed the causes ...
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Was the Federal Reserve Bailout of $85B to AIG in 2008 'printed money'
Was the federal reserve loan of $85 billion to AIG in 2008 done with existing reserves from the Treasury or were new reserves created and exchanged for assets at AIG similar to how the Fed performs ...
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Applications of a certain type of stochastic processes in macroeconomic, macroeconometric or finance
A compound Poisson random vector $Y$ is well defined in this site in wikipidia.
Nothing prevents me from compound strictly stationary stochastic processes instead of compound random vectors. The ...
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How do higher debt-servicing costs cause financial crises?
I want to understand the context of an article (Economist, Finance and Economics section, Oct 28th, 2022)
Bruno Le Maire, France's finance minister:
"Money is no longer interest-free in the new ...
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Was the 1991 financial crisis in Sweden caused by the financial market?
I'm reading How Will Capitalism End? by Wolfgang Streeck, and in the chapter on fiscal consolidation, he claims Sweden was punished by financial markets in 1991 for its expansive fiscal policy.
I've ...
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How could Enron have used mark-to-market accounting to fool the market in 2000 if it was banished by Franklin Roosevelt in 1938?
I've watched a video from Ted Talks entitled "The real truth about the 2008 financial crisis", where the speecher (Brian S. Wesbury) expresses his ideias on how the economic cycles arise and ...
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Understanding Mortgaged Backed Security during financial crisis
This is my understanding of the mortgage backed security.Banks will give loans to customers, and then they decide to sell the loans to investment banks and charge a fee with it to earn profit. Now the ...
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Proxy for financial crisis
I'm trying to do some empirical work and trying to find a good proxy for the financial shock of 2008. My first idea was to consider the change in real interest rate between 2007 and 2008 but I don't ...
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Have the deregulation measures that caused the 2007-2008 crisis been rolled back?
The 2007-2008 financial crisis was largely attributed to several deregulation measures, especially the Gramm-Leach-Bliley act. Have any of these measures been rolled back after the crisis, or new ones ...
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Have Bernanke, Geithner, Paulson, or the Fed ever responded to Laurence Ball's accusations about Lehman?
Ben Bernanke, Hank Paulson, and Timothy Geithner have repeatedly stated that they wanted to save Lehman Brothers but couldn't do so legally because Lehman didn't have enough collateral.
Laurence Ball ...
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Do states compete with each other when they emit debt?
Let's say that, for some reason (a crisis or similar), many first-world countries' states need to emit public debt to be able to pay the services the normally provide (pensions, health etc.).
As I ...
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Interventions during the current Corona crisis: Government credits
In the light of the current public health crisis caused by COVID-19, I would like to know more about how government or central bank interventions are supposed to influence and limit the economic ...
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Questions about the future of macroeconomic modeling and the role of simultaneous equation systems
I started to study about macroeconomic modeling and I am interested in the following questions. I understand that there are no definite answers to these questions. But I am interested in the opinion ...
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Data for currency crises
Dear StackExchange users,
I am currently studying currency crises and for that I need data from 1980-2018. I have used data from IMF, OECD, BIS, WORLD BANK, etc., but I still have some missing data ...
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Was the 2008 financial crisis caused more by the US subprime mortgage lending or more by an international energy and oil pricing crisis?
I recently read The Big Short by Michael Lewis in which the depiction of the role of subprime mortgage lending in the US and then run away speculation on CDOs are shown to be the central and primary ...
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Collapse of Lehman Brothers: What did they have in their books?
What kind of products did Lehman Brothers have on their books that caused the collapse? Do we have access to data on this topic?
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Is quantitative easing part of the ECB's and Fed's mandates?
Is quantitative easing part of the ECB's and Fed's mandates or is it an exceptional policy that they used, especially in the financial crisis 2007-2008?
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Decline in the Value of the Domestic Currency
I am using Mishkin's textbook "Economics of Money, Banking and Financial Markets." On the chapter on financial crises, the authors list a number of factors that could trigger a crises.
One factor is ...
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Asset Market Effects on Balance Sheets
I am currently using Mishkin's textbook "Economics of Money, Banking and Financial Markets." The chapter on financial crises starts with the causes of financial crises.
One reason given is the ...
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When is the pegged price equal to the market price
Suppose the government pegs an exhaustible resource, at a price $P^*$. I found out that the shadow price (initial price of the resource if government didn't peg) would be
$$Q_t = ( \sigma i S_t )^\...
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How did the derivatives market 'collapse' in 2008?
I just watched the film 'The big short', and have been trying to think in context with the financial markets in 2008. I think the film does a great job of explaining how sub-prime mortgages came to be ...
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How have central banks been injecting currency after crises since 2007?
In an article by Jean-Michel Naulot about the 2007–2008 financial crisis, I read (my translation):
Although central banks had an exemplary reaction at the time of the [2007–2008] crisis, they ...
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What should the Euro regulators look for and monitor to prevent a Euro crisis? [closed]
What should the Euro regulators look for and monitor to prevent a Euro crisis?
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Episodes of Housing Crashes and Never Recovering
Looking at many housing markets in major cities around the world today it looks like most (London, New York, Sydney, Beijing, Toronto,...) have become totally detached from the earnings of the local ...
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Why recent crises all started with a housing bubble?
I was writing some notes about the last economic and financial crisis and I noticed that all these recent crisis start with a housing bubble. Beside the 2007-08 US's one, also Japanese crisis in the ...
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Why did the hybrid Phillips Curve become flatter (as empirical data shows) after the crisis?
The Phillips Curve equation is:
$$\pi_t=\pi_t^e + \beta_1 (\beta_2 Y_t + (1-\beta_2) Z_t) + \varepsilon_t^\pi$$
where $\pi_t$ is the inflation, $\pi_t^e$ is the expected inflation, $Y_t$ is the output ...
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In which cases prior to the Greek crisis did the IMF admit mistakes in it's economic policies?
Has the IMF ever admitted mistakes on it's economic policies prior to the Greek crisis?
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Did the financial crisis affect the retirement patterns of Baby boomers?
Baby boomers are retiring and have been for a few years already. The financial crisis potentially made a large fraction f them change their retirement plans. Is there some measure / study of this ...
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What do economist state as evidence that "structural reform" works?
The typical recipe for countries to improve their growth rate and escape high indebtedness is to reduce expenditure and implement structural reform. What do people use as evidence of structural reform ...
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What are the indicators of a country being in a financial crisis
What are the indicators of a country being in a financial crisis?
I would like to know both about the acute and recovery phase.
I am trying to make a point to our company that we are not growing ...
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What analysis has been done to predict the next big financial crash?
There has been a lot of talk about a big pending financial crash due to the slowing global economy, low interest rates, rising debt levels, etc. Now I'm wondering:
Has anyone done any analysis to ...
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Is it correct to say that wealth is "destroyed" when an asset bubble bursts?
I was reading this article from the World Economic Forum, when I came across this passage:
When the global equity and real estate markets hit their lowest points in March 2009, \$34.4 trillion of ...
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What actually went wrong in the economy as described by "The Big Short"?
Part of my personality is Engineering, so I look for root causes. I suppose that the cause of any bubble is "speculation", which just means pretending that ghosts are real, or that the word "LION" is ...
user12110
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Authoritative Books on Subprime Mortgage Crisis
I'm looking to learn more in detail about the situations and actions that setup the sub-prime mortgage crisis. In particular I'm looking for an authoritative book or books that provides a multifaceted ...
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Bond market vs stock market during crisis
Why does bond market not change as much as the stock market during financial crisis? On the picture we see the development of the two markets
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Financialization of the economy
What is the financialization process of wealth in the economy? What
are the determining factors? What are its consequences?
What is the role of financialization in the economic crisis of 2008?
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Could debt cause inflation instead of deflation?
It is well known that debt can cause deflation, especially during crisis: to repay their debts agents sell their goods which causes a fall in prices.
But if there is no crisis and agents "have the ...
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If I don't pay a debt, then the creditor takes my goods. Why, then, do Greek creditors not take Greece?
Normally, when you don't pay a debt, your creditors take your goods (house, car, etc).
If Greece cannot pay its debt, can its creditors take Greek goods (structures, cities, industries, lands, etc)? ...
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Have the Greek bailouts been included in state budgets Eurozone members?
A lot of people (mainly journalists and politicians) say that Eurozone taxpayers pay for the Greek bailouts. On the other hand, a lot of economists say that those money have not been added in the ...
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What happens to the billions in Euros that Greece owes if it leaves the Euro
Greeces owes billions of Euros to the IMF and European Union. What happens to those debts if it leaves the Euro? Do the debts get translated into Drachma or can the government just print Drachma to ...
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Large banks collapsing verses a single countries economic decline [closed]
Please excuse anything i get wrong here i am in no way a economics expert but i am interested in the subject.
Earlier today I saw someone make a post about how banks like CitiGroup have been given $...
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Could the Troika's economic plan work for Greece?
There are a number of things that are confusing me about the current Greek financial crisis. The first is this.
Is it plausible that if Greece did everything the Troika asked then
the Greek ...
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Why shutdown the banks (Greece)?
What benefit is there to shutting down the banks in Greece? It seems that this would do more harm than good. Won't this impede economic growth by not allowing companies and startups access to capital? ...
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Larry Summers on the causes of secular stagnation
In an influential speech on November 8, 2013 at the IMF Annual Research Conference, Larry Summers suggested that slow economic growth in the years following the 2007–2008 financial crisis might be due ...
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Understanding the impact of Subprime Mortgages crisis on investment banking
I'm interested to know the exact magnitude of impact of Subprime Mortgages crisis on major players in investment banking.
In particular, how can I find data for percentage of revenue from Subprime ...
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The most frequent causes of economic downfall?
In retrospect what are the major parameters, most frequently causing countries' economy to reduce its size and/or growth.
Global Financial Crisis?
Regional instability?
Local Banking Sector failure?
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Currency Devaluation and the causes of the Tequila Crisis
I was reading about some of the famous crisis that happened in the past and i came across "the tequila crisis" in mexico during 1994-96.
As a background, The Tequila crisis (also known as the Mexican ...
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What assurances are there that the Federal Reserve does not give money to banks?
My understanding of the operation of the United States Federal Reserve Bank is that it invents dollars by a unilateral, unbalanced credit to its own account and then it loans this money to member ...
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List of EU banks that received state aid
Is there a list of EU banks that got state aid / bailed out since 2008 crisis? I know EU state aid commission approves the fundings to banks, but does anyone keep track of which banks are tapping into ...
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