Corpus ID: 155325859

The Costs and Contradictions of the Lender-of-Last Resort Function In Contemporary Capitalism: The Sub-Prime Crisis of 2007 – 2008

@inproceedings{Epstein2009TheCA,
  title={The Costs and Contradictions of the Lender-of-Last Resort Function In Contemporary Capitalism: The Sub-Prime Crisis of 2007 – 2008},
  author={G. Epstein},
  year={2009}
}
Paper prepared for the Conference on Financial Markets, Financial Regulation and Monetary Policy in Honor of Jane D’Arista, Political Economy Research Institute (PERI), University of Massachusetts, Amherst, May 2 – 3, 2008. The authors thank Tom Bernardin, Iren Levina, Philip Luck, and Shiyun Feng for excellent research assistance. All remaining errors are ours. Gerald Epstein: gepstein@econs.umass.edu James Crotty: crotty@econs.umass.edu 
6 Citations
Avoiding Another Meltdown
The authors argue that the current financial crisis, the worst since the Great Depression, can be seen as the latest phase in the evolution of financial markets under a radical financial deregulationExpand
The financing of developing countries in the face of the global financial crisis
The depth and width of the crisis of deregulated, liberalized and poorly supervised finances will entail changes in the regulation and supervision of financial systems. However, these changes areExpand
Structural causes of the global financial crisis: a critical assessment of the ‘new financial architecture’
We are in the midst of the worst financial crisis since the Great Depression. This crisis is the latest phase of the evolution of financial markets under the radical financial deregulation processExpand
Proposals for Effectively Regulating the U.S. Financial System to Avoid Yet Another Meltdown
It is now clear that we are in the midst of the worst financial crisis since the Great Depression. This crisis is the latest phase of the evolution of financial markets under the radical financialExpand
O Banco Central como emprestador de última instância: mão quase invisível ao sustentar os mercados
In cases of financial crisis, to prevent the credit crunch and the fall of the banking system, the Central Bank must print money and create credit from "nothing", as a lender of last resort. TheExpand

References

SHOWING 1-10 OF 45 REFERENCES
The Financial Turmoil of 2007-?: A Preliminary Assessment and Some Policy Considerations
The unfolding financial turmoil in mature economies has prompted the official and private sectors to reconsider policies, business models and risk management practices. Regardless of its futureExpand
Managing Financial Instability in Emerging Markets: A Keynesian Perspective
The Keynesian analysis of financial stability as developed by Hyman Minsky, provides considerable insights into understanding the nature and dynamics of boom-bust cycles driven by internationalExpand
Past financial crises, the current financial turmoil, and the need for a new macrofinancial stability framework
While it is tempting to focus on new financial innovations in helping explain recent financial turmoil, more traditional causes should not be overlooked. As on many previous occasions, very rapidExpand
Stabilizing an Unstable Economy
"Mr. Minsky long argued markets were crisis prone. His 'moment' has arrived." -The Wall Street Journal In his seminal work, Minsky presents his groundbreaking financial theory of investment, one thatExpand
The Lender of Last Resort: Some Historical Insights
This paper discusses the role for a lender of last resort (LLR) in preventing banking panics (section I) , then briefly considers classical and more recent concepts of the LLR (section II). SectionExpand
Changes in the U.S. Financial System and the Subprime Crisis
This paper traces the evolution of housing finance in the United States from the deregulation of the financial system in the 1970s to the breakdown of the savings and loan industry and theExpand
Manias, Panics and Crashes: A History of Financial Crises
1. Financial Crisis: A Hardy Perennial 2. Anatomy of a Typical Crisis 3. Speculative Manias 4. Fueling them Flames: The Expansion of Credit 5. The Critical Stage: Pricking the Bubble 6. Euphoria andExpand
The Lender of Last Resort: A Historical Perspective
The current international debt situation has led some analysts to suggest the possibility of a scenario whereby international debt defaults quickly lead to severe strains on domestic commercialExpand
The Correlates of Rentier Returns in OECD Countries
This paper examines the correlates of rentier returns – returns to the ownership of financial assets – in a sample of OECD countries between 1960 and 2000. The authors develop a simple bargainingExpand
Liquidity, Monetary Policy, and Financial Cycles
A close look at how financial intermediaries manage their balance sheets suggests that these institutions raise their leverage during asset price booms and lower it during downturns - pro-cyclicalExpand
...
1
2
3
4
5
...