Has Finance Made the World Riskier

By Raghuram G. Rajan. 2006

829 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d638cd5e56fbb614dfb8a012877ae0ba3ee8bd05

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Citations in the corpus

Rankings and Risk-Taking in the Finance Industry (2018, positive): “This result is in line with the literature arguing that tournament incentives increase risk-taking (Hvide (2002), Rajan (2006), Kleinlercher et al. (2014)).”
When the Cat's Away the Mice will Play: Does Regulation at Home Affect Bank Risk Taking Abroad? (2013, neutral): “In that sense, risky behavior abroad could reflect a ‘‘search for yield’’ (Rajan, 2006; Goldberg, 2009).”
Monetary Policy and Bank Profitability in a Low Interest Rate Environment (2018, neutral): “However, there may also be downsides associated with monetary policy easing (Rajan, 2005; Allen and Rogoff, 2011; Stein, 2012 and 2014; Stiglitz, 2016), in particular when interest rates remain too-low-for-too-long (Taylor, 2008; Maddaloni and Peydró, 2011).”
The Timeliness of Accounting Write-Downs by U.S. Financial Institutions During the Financial Crisis of 2007-2008 (2011, background): “In a particularly prescient article, Rajan (2006) argues that the incentive structures of”
Economic uncertainty and bank risk: Evidence from emerging economies (2020, positive): “The incentive of banks to “search for yield” amid economic uncertainty is in line with the argument of Rajan (2006) and Borio and Zhu (2012) that banks keep or increase their holding of risky assets when facing profit-decreasing environments and sticky rate-of-return targets.”
Credit-Market Sentiment and the Business Cycle (2017, neutral): “6See, for example, Rajan (2006); Borio and Zhu (2012); Jiménez, Ongena, Peydró, and Saurina (2014); Hanson and Stein (2015); Gertler and Karadi (2015); and Lian, Ma, and Wang (2016).”
Monetary Policy Strategy: Lessons from the Crisis (2011, positive): “First, as Rajan (2005, 2006) points out, low interest rates can increase the incentives for asset managers in financial institutions to search for yield and hence increase risk taking.”
Econometric Measures of Systemic Risk in the Finance and Insurance Sectors (2010, background): “…provide principal protection on their 2See, for example Acharya and Richardson (2009), Allen and Gale (1994, 1998, 2000), Battiston et al. (2009), Brunnermeier (2009), Brunnermeier and Pedersen (2009), Gray (2009), Rajan (2006), Danielsson, Shin, and Zigrand (2009), and Reinhart and Rogoff (2009).”
Hazardous Times for Monetary Policy: What Do Twenty‐Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk‐Taking? (2014, neutral): “…that when the monetary policy rate is lower, the intensity of risk-taking is not simply the result of more lending by capital-constrained banks (as in Adrian and Shin (2011)), but is also consistent with risk-shifting (as in Rajan (2006) or several models summarized in Allen and Rogoff (2011)).”