Questions tagged [financial-crises]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
0 votes
1 answer
62 views

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 ...
user avatar
0 votes
0 answers
31 views

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 ...
user avatar
2 votes
1 answer
55 views

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 ...
user avatar
0 votes
1 answer
48 views

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 ...
user avatar
  • 509
2 votes
1 answer
62 views

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 ...
user avatar
0 votes
0 answers
22 views

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 ...
user avatar
  • 101
1 vote
0 answers
24 views

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 ...
user avatar
0 votes
1 answer
82 views

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 ...
user avatar
2 votes
1 answer
32 views

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 ...
user avatar
  • 21
5 votes
1 answer
245 views

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 ...
user avatar
2 votes
1 answer
65 views

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?
user avatar
  • 229
0 votes
1 answer
27 views

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?
user avatar
0 votes
1 answer
100 views

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 ...
user avatar
  • 1,631
0 votes
1 answer
194 views

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 ...
user avatar
  • 1,631
0 votes
0 answers
27 views

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 )^\...
user avatar
  • 281
4 votes
2 answers
272 views

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 ...
user avatar
1 vote
2 answers
89 views

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 ...
user avatar
-1 votes
1 answer
90 views

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?
user avatar
  • 1
3 votes
1 answer
118 views

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 ...
user avatar
  • 649
3 votes
5 answers
278 views

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 ...
user avatar
  • 734
1 vote
2 answers
147 views

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 ...
user avatar
2 votes
1 answer
32 views

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?
user avatar
  • 123
1 vote
1 answer
33 views

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 ...
user avatar
  • 2,590
3 votes
1 answer
160 views

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 ...
user avatar
  • 2,590
1 vote
0 answers
167 views

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 ...
user avatar
0 votes
2 answers
156 views

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 ...
user avatar
  • 135
6 votes
1 answer
165 views

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 ...
user avatar
  • 329
5 votes
2 answers
626 views

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 ...
user avatar
3 votes
2 answers
217 views

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 ...
user avatar
2 votes
1 answer
240 views

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
user avatar
  • 229
4 votes
2 answers
164 views

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? ...
user avatar
  • 141
4 votes
1 answer
627 views

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 ...
user avatar
19 votes
3 answers
731 views

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)? ...
user avatar
5 votes
2 answers
87 views

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 ...
user avatar
  • 169
3 votes
1 answer
102 views

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 ...
user avatar
  • 235
3 votes
0 answers
89 views

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 $...
user avatar
  • 131
3 votes
1 answer
60 views

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 ...
user avatar
  • 235
5 votes
1 answer
180 views

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? ...
user avatar
  • 153
14 votes
2 answers
4k views

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 ...
user avatar
3 votes
1 answer
221 views

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 ...
user avatar
2 votes
1 answer
107 views

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? ...
user avatar
  • 307
8 votes
2 answers
1k views

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 ...
user avatar
  • 83
2 votes
1 answer
109 views

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 ...
user avatar
  • 1,678
8 votes
2 answers
2k views

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 ...
user avatar
  • 223
6 votes
2 answers
176 views

Unintended consequences from "fixing" the US financial system

Last year, I read the book The Bankers' New Clothes: What's Wrong with Banking and What to Do about It. The book explained some of the causes of the recent financial crisis of 2007-2009 and gave some ...
user avatar
6 votes
2 answers
166 views

How Do Economists Quantify Contagion?

In the context of international financial crises, what mathematical methods have Economists employed in order to quantify financial contagion? Note: For a working definition of contagion I'll use the ...
user avatar
  • 725