The Vickers Commission’s failure

Laurence J. Kotlikoff, 26 October 2012

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The UK is still reeling from the great financial crash. Real GDP remains below its 2007 level, the nation’s 8.4% unemployment rate is at a 16-year high, and youth unemployment is over 20% (BBC 2012). Over three million UK citizens can’t find work or have given up looking.

Topics: International finance, Macroeconomic policy
Tags: banking sector, financial regulation, UK, Vickers Commission

Banks and cross-border capital flows: Policy challenges and regulatory responses

Markus K Brunnermeier, José De Gregorio, Philip Lane, Hélène Rey, Hyun Song Shin, 7 October 2012

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The textbook case for financial integration is well known. It allows capital to flow from capital-rich to capital-poor economies, where returns should be higher. These flows complement limited domestic saving in capital-poor countries and reduce their cost of capital, boosting investment and growth.

Topics: International finance
Tags: banking sector, financial sector

What is the contribution of the financial sector?

Andrew G Haldane, Vasileios Madouros, 22 November 2011

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There is no doubting the financial sector has a significant impact on the real economy. Financial crisis experience makes this only too clear.1 Financial recessions are both deeper and longer-lasting than normal recessions. At this stage of a normal recession, output would be about 5% above its pre-crisis level. Today, in the UK, it remains about 3.5% below.

Topics: Global crisis, International finance
Tags: banking sector, financial crisis, financial sector

Too much finance?

Jean-Louis Arcand, Enrico Berkes, Ugo Panizza, 7 April 2011

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The idea that a well-working financial system plays an essential role in promoting economic development dates back to Bagehot (1873) and Schumpeter (1911). Empirical evidence on the relationship between finance and growth is more recent.

Topics: Financial markets, Global crisis, Macroeconomic policy
Tags: banking sector, financial regulation, systemic risk, Too big to fail

Time for unorthodox monetary policy

John Muellbauer, 27 November 2008

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The world economy is trapped in a dangerous global downward spiral of falling asset prices, shrinking credit, and rising bankruptcies, foreclosures and unemployment – all of which feed into more of the same – and drag commodity and now goods prices down with them.1 We were among the first to give a research-based warning of the coming price deflation i

Topics: Monetary policy
Tags: banking sector, financial markets, global crisis, monetary policy

Involving European citizens in the benefits of the rescue plan: The political paradoxes of bank socialism

Tito Boeri, 15 October 2008

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Leaders of the Eurozone finally agreed on a plan. It is a very ambitious rescue plan – as it should be – to stop the self-fulfilling prophecies that brought us to the brink of another Great Depression. But it should now be made acceptable to European citizens.

Topics: Financial markets, Welfare state and social Europe
Tags: banking sector, rescue plan, taxation

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