The puzzling pervasiveness of dysfunctional banking

Charles W Calomiris interviewed by Romesh Vaitilingam, 21 Mar 2014

Charles Calomiris talks to Romesh Vaitilingam about his recent book, co-authored with Stephen Haber, ‘Fragile by Design: The Political Origins of Banking Crises and Scarce Credit’. They discuss how politics inevitably intrudes into bank regulation and why banking systems are unstable in some countries but not in others. Calomiris also presents his analysis of the political and banking history of the UK and how the well-being of banking systems depends on complex bargains and coalitions between politicians, bankers and other stakeholders. The interview was recorded in London in February 2014.

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See Also

Calomiris, C W and S H Haber (2014), Fragile by Design: The Political Origins of Banking Crises and Scarce Credit, Princeton University Press.

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Topics: Financial markets
Tags: bank capital, Bank credit, banking, banks, credit booms, Eurozone crisis, recapitalisation, systemic risk

Why fiscal sustainability matters

Willem Buiter, 10 January 2014

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Does fiscal sustainability matter only when there is a fiscal house on fire, as was the case with the Greek sovereign insolvency in 2011–12? Far from it.

Topics: Financial markets, Global crisis, International finance, Macroeconomic policy
Tags: balance-sheet recession, banking, banking union, banks, capital flows, credit booms, Currency wars, emerging markets, eurozone, Eurozone crisis, financial crisis, fiscal policy, fiscal sustainability, global financial crisis, sovereign debt, sovereign debt restructuring

Gross inflows and the incidence of credit booms

César Calderón, Megumi Kubota, 16 December 2012

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Foreign flows into emerging market economies have surged in the post-crisis period. The surge in gross inflows has come alongside a rapid creation of credit, an excessive increase in stock and housing prices and continued pressure towards further appreciation of the currency in emerging market economies. These developments have reignited the debate on capital inflow management.

Topics: Global crisis, International finance
Tags: credit booms, global crisis, gross inflows

Bank credit during the 2008 financial crisis: A cross-country comparison

Ari Aisen, Michael Franken, 28 May 2010

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Rarely has an episode of financial turmoil generated such economic havoc as the 2008 financial crisis. The wealth destruction was unique – estimated at $50 trillion, the equivalent to one year of world GDP (Loser 2009) – which resulted from the plunge in the value of stocks, bonds, property, and other assets.

Topics: Global crisis, International finance
Tags: Bank credit, credit booms, global crisis

Credit booms go wrong

Alan Taylor, Moritz Schularick, 8 December 2009

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The financial crisis of 2008–09 has reignited interest in understanding the crucial roles money and credit play in the creation, propagation, and amplification of economic shocks. Such research on the importance of financial structure promises to reopen a number of fundamental fault lines in modern macroeconomic thinking.

Topics: Economic history, Macroeconomic policy
Tags: credit booms, global crisis, money

The US subprime mortgage crisis: A credit boom gone bad?

Giovanni Dell'Ariccia, Luc Laeven, Deniz Igan, 4 February 2008

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Recent events in the market for mortgage-backed securities have placed the US subprime mortgage industry in the spotlight. Over the last decade, this market has expanded dramatically, evolving from a small niche segment into a major portion of the overall US mortgage market.

Topics: Financial markets
Tags: credit booms, mortgage market, Subprime, subprime crisis, subprime mortgage lending

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