Commentary: has financial development made the world riskier?

By Hyun Song Shin. 2005

203 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/1100522c8121649d5a3b64cb05bf69425decb80e

Citations in the corpus

• Have Financial Markets Become More Informative (2016, unknown): “Rajan (2005) suggests that financial complexity raises the probability of a 2In his survey of the literature on financial development and growth, Levine (2005) splits the role of the financial industry into five broad functions: 1) information production about investment opportunities and…”
• Speculation and Risk Sharing with New Financial Assets (2013, unknown): “In this setting, a natural measure of portfolio risk for a trader is the variance of her net worth (calculated according to her own beliefs).”
• Financial Globalisation and the Crisis (2012, unknown): “However, the risk of a large-scale financial crisis was not much discussed, with some well-known exceptions (Rajan 2005; Stulz 2005).”
• Effects of culture on firm risk-taking: a cross-country and cross-industry analysis (2012, unknown): “Other studies, such as Rajan (2005) and Altunbas et al. (2010), assert that monetary policy easing can induce greater risk-taking through its effects on leverage and asset prices.”
• An Historical Perspective on the Crisis of 2007-2008 (2008, unknown): “As Rajan ( 2005) presciently argued, shifting the risk away from banks who used to have the incentives to monitor their borrowers to hedge funds and other institutions which do not, rather than reducing overall systemic risk increased it by raising the risk of a much more widespread meltdown in the…”
• Too much finance? (2015, unknown): “More recently, in a paper that seemed controversial then, and looks prophetic now, Rajan (2005) 6 For a discussion of the concept and process of financial development per se, see also de la Torre et al. (2011).”
• Market Discipline, Financial Integration and Fiscal Rules: What Drives Spreads in the Euro Area Government Bond Market? (2007, unknown): “One economic rationale behind the strong correlation between spreads and short term interest rates may lie in the compensation structure of investment managers, as recently suggested by Rajan (2005).”
• Rules versus discretion in loan rate setting (2010, unknown): “over the course of its relationship with the firm, during which the bank learns more about the firm’s creditworthiness and prospects (Sharpe (1990), Rajan (1992) and Boot and Thakor (1994)).”
• Monetary Policy and Financial Stability: What Role in Prevention and Recovery? (2014, unknown): “14 On some of these aspects, see also IMF (2013b), Rajan (2013), Volcker (2013) and Trichet (2013). 15 To be sure, there is a one-off positive effect from keeping asset prices up and, indirectly, to the extent that the economy is stronger.”
• Life below Zero: Bank Lending under Negative Policy Rates (2019, unknown): “1 Before the introduction of negative policy rates in Europe, Saunders (2000) laid out potential implications for bank behavior by considering the case of Japan in the late 1990s.”
• Too Much Finance? (2012, unknown): “More recently, in a paper that seemed controversial then, and looks prophetic now, Rajan (2005) discussed the dangers of nancial development suggesting that the presence of a large and complicated nancial system had increased the probability of a catastrophic meltdown.”
• The Real Effects of Disrupted Credit: Evidence from the Global Financial Crisis (2019, unknown): “ACKNOWLEDGMENTS I thank Olivier Blanchard, Janice Eberly, Mark Gertler, Gary Gorton, Raghuram Rajan, and James Stock for comments.”
• Financial Crises: Explanations, Types, and Implications (2013, unknown): “bubble (Rajan, 2005).(5) Other microeconomic factors (e.g., interest rate deductibility for household mortgages and corporate debt) can add to this, possibly leading to bubbles (see BIS, 2002 for a general review, and IMF (2009) for a review of debt and other biases in tax policy with respect to the”
• Bank Risk and Monetary Policy (2010, unknown): “Similarly, Rajan (2005) suggests that more market-based pricing and stronger interaction between banks and financial 1 We would like to thank Francesco Columba, Michael Ehrmann, Paolo Del Giovane, Philipp Hartmann, Alistair Milne, Fabio Panetta, and participants at the conference “The Transmission…”
• Risk and liquidity in a system context (2008, unknown): “Rajan (2005) notes how financial development has been made possible by greater use of “arms length” relationships in financial contracts, but such arms length relationships also imply greater delegation.”
• International Channels of Transmission of Monetary Policy and the Mundellian Trilemma (2015, unknown): “7Another potentially related channel of transmission of monetary policy is the ”search for yield” (Rajan (2005)).”