Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro- and Financial Policies

By Asli Demirgüç-Kunt, L. Serven. 2010

130 citations recorded by the source corpus.

The recent global financial crisis has shaken the confidence of developed and developing countries alike in the very blueprint of financial and macro policies that underlie the western capitalist systems. In an effort to contain the crisis from spreading, the authorities in the US and many European governments have taken unprecedented steps of providing extensive liquidity, giving assurances to bank depositors and creditors that include blanket guarantees, and structuring bail-out programs that include taking large ownership stakes in financial institutions, in addition to establishing programs for direct provision of credit to non-financial institutions. Emphasizing the importance of incentives and tensions between short term and longer term policy responses to crisis management, this paper draws on a large body of research evidence and country experiences to discuss the implications of the current crisis for financial and macroeconomic policies going forward.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/eb532d7e64079a19b4da3eea3d9554ca048271b2

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Citations in the corpus

Bank Regulation and Supervision Around the World: A Crisis Update (2012, background): “Much has already been written about the causes of the recent global crisis (Caprio, Demirgüç-Kunt, and Kane, 2010; Demirgüç-Kunt and Serven, 2010; Rajan, 2010, among others), and discussion on the explanations of the crisis is still ongoing.”
Regulations, competition and bank risk-taking in transition countries (2008, result): “…risk-taking which are consistent with the literature that suggests a number of benefits from the entry of foreign banks in emerging markets, 14 as well as the negative impact of state-owned banks on the banking sector (see La Porta et al., 2002; Demirgüç-Kunt and Serven, 2009, for discussions).”
Financial Crises and Bank Failures: A Review of Prediction Methods (2010, background): “private incentives with public interest without taxing or subsidizing private risk-taking (Demirguc- Kunt and Serven [ 30 ]).”