Capital is not back: A comment on Thomas Piketty’s ‘Capital in the 21st Century’

Odran Bonnet, Pierre-Henri Bono, Guillaume Camille Chapelle, Étienne Wasmer, 30 June 2014

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The impressive success of Thomas Piketty’s book (Piketty 2014) shows that inequality is a great concern in most countries. His claim that “capital is back”, because the ratio of capital over income is returning to the levels of the end of the 19th century, is probably one of the most striking conclusions of his 700 pages.

Topics: Global economy
Tags: capital, house prices, housing, housing bubble, Inequality, rents, wealth inequality

Capital controls in the 21st century

Barry Eichengreen, Andrew K Rose, 5 June 2014

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Capital controls are back. The IMF (2012) has softened its earlier opposition to their use. Some emerging markets – Brazil, for example – have made renewed use of controls since the global financial crisis of 2008–2009.

Topics: International finance
Tags: capital, capital controls, capital flows, global financial crisis, IMF, Macroprudential policy

Selling assets to raise corporate capital

Alex Edmans, William Mann, 15 February 2014

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Asset sales are a means of financing

Topics: Financial markets, Frontiers of economic research
Tags: adverse selection, asset sales, asymmetric information, capital, financing, information asymmetry, lemons problem

Capital shortfall: A new approach to ranking and regulating systemic risks

Viral Acharya, Robert Engle, Matthew Richardson, 14 March 2012

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The most severe impacts of the financial crisis of 2007–09 arose immediately after the failure of Lehman Brothers on 15 September 2008.

Topics: Financial markets, International finance
Tags: banks, capital, systemic risk

The illusion of bank capital

Raihan Zamil, 7 May 2011

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How much capital should banks hold to cover their risk? That question has been thrown back and forth among policymakers, bankers, and academics for years – and now, with the global crisis still lingering, the debate is more intense than ever.

Topics: Financial markets, International finance
Tags: capital, capital adequacy ratio, financial regulation

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