The Financial Crisis of 2007-2008 and its Macroeconomic Consequences
@inproceedings{Stiglitz2009TheFC, title={The Financial Crisis of 2007-2008 and its Macroeconomic Consequences}, author={J. E. Stiglitz}, year={2009} }
Information and incentive problems played important roles in the financial market scandals of the late 90s (exemplified by Enron/Worldcom) and in the financial crisis of 2007/2008. In my book Roaring Nineties, I provide an interpretation of the market scandals of the late nineties and early years of this century. Here, I want to provide a similar interpretation of the 2007/2008 crisis and a critique of the policy responses. The analysis here is motivated in part by observations of a large…
62 Citations
Global Governance for Financial Stability
- Economics
- 2014
The problems of boom-bust patterns of financial markets have a long history (Kindleberger 1978; Reinhart and Rogoff 2009). Its frequency has been high since the 1970s, as a result of both financial…
ECONOMIC CRISIS AND POLANYI’S DOUBLE MOVEMENT
- Economics
- 2016
As experts discuss the causes and results of the 2008 financial crisis and ensuing Great Recession, economists of various strands, led mainly by Keynesians, are slowly beginning to question the…
The Global Financial Crisis of 2008-10: A View from the Social Sectors
- Economics
- 2010
The impact of the US financial crisis that unfolded in 2008 has been global. It was felt in output, trade, and cross-border capital flows and transfers. Incomes have dropped and consumption patterns…
The Role Credit Rating Agencies Played in the Financial Meltdown of 2008-2009
- Economics
- 2015
This is an area dear to the author’s heart, so is the role of Auditors in the global economic meltdown of 2008-2009, however, we this must admit that we were blind to the obvious, either for lack of…
Keynes and Economic Crisis: Some Reconsiderations
- Economics
- 2009
In this paper we read Keynes’s General Theory of Employment, Interest and Money from the point of view of the main causes of the economic crisis in general and particularly the present world economic…
Adverse Selection and Financial Crises
- Economics, Business
- 2011
The recent financial crisis has highlighted the importance of adverse selection as a contributing factor to financial market instability. In this article, the author examines the phenomenon of…
Banks Fearing the Drought? Liquidity Hoarding as a Response to Idiosyncratic Interbank Funding Dry-Ups
- EconomicsSSRN Electronic Journal
- 2021
RETHINKING MACROECONOMICS: WHAT FAILED, AND HOW TO REPAIR IT
- Economics
- 2011
The standard macroeconomic models have failed, by all the most important tests of scientific theory. They did not predict that the financial crisis would happen; and when it did, they understated its…
From the Crisis of Distribution to the Distribution of the Costs of the Crisis: What Can We Learn from Previous Crises about the Effects of the Financial Crisis on Labor Share?
- Economics
- 2009
The working paper analyzes the possible distributional consequences of the global crisis based on the lessons of past crises. The decline in the labor share across the globe has been a major factor…
Separation of Investment Banking and Commercial Banking: Implication for Public Interest and Confidence
- Economics
- 2016
The purpose of this paper is to critically examine existing literature on separation of commercial banking activities from investment banking activities in order to advise whether the commercial and…
References
SHOWING 1-10 OF 17 REFERENCES
Economic Crises: Evidence and Insights from East Asia
- Economics
- 1998
THE EAST ASIAN crisis is only the latest in a series of spectacular economic catastrophes in developing countries. In the past twenty years at least ten countries have suffered from the simultaneous…
Looting: The Economic Underworld of Bankruptcy for Profit
- Economics
- 1993
During the 1980s, a number of unusual financial crises occurred. In Chile, for example, the financial sector collapsed, leaving the government with responsibility for extensive foreign debts. In the…
The Procyclical Role of Rating Agencies: Evidence from the East Asian Crisis
- Economics
- 1999
type="main" xml:lang="en"> We demonstrate that credit rating agencies aggravated the East Asian crisis. In fact, having failed to predict the emergence of the crisis, rating agencies became…
Franchise Value and the Dynamics of Financial Liberalization: The Use of Capital Requirements and Deposit Rate Controls for Prudential Regulation
- Economics
- 2002
We would like to thank Jerry Caprio and seminar participants at the William Davidson Institute at the University of Michigan. All remaining errors are our own. This paper represents the views of the…
Credit Markets and the Control of Capital
- Economics
- 1985
Traditional discussions of the role of capital markets have identified a number of distinct functions which they perforrn: they allocate scarce capital among competing users and uses,l and they…
Liberalization, Moral Hazard in Banking and Prudential Regulation: Are Capital Requirements Enough?
- Economics
- 1997
In a dynamic model of moral hazard, competition can undermine prudent bank behavior. While capital-requirement regulation can induce prudent behavior, the policy yields Pareto-inefficient outcomes.…
Information, Competition, and Markets
- Economics
- 1983
One of the dominant characteristics of modern capitalist economies is the important role played by competition: not the peculiar static form of pure price competition embodied in the Arrow-Debreu…
The Modern Corporation and Private Property.
- Economics
- 1932
This monumental work on the corporation is one of those enduring classics that many cite but few have read. Graced with a new introduction by Weidenbaum and Jensen, this new edition makes this…