To end moral hazard and “too big to fail”, investors, not taxpayers, should bear the loss associated with bank failures. Recently, ECOFIN took a major step in this direction. It agreed a common position with respect to the Banking Recovery and Resolution Directive. If confirmed in the trialogue with the Commission and the European Parliament, the Directive will:
A game changer: The EU banking recovery and resolution directive
Thomas Huertas, María J Nieto, 19 September 2013
Coping with financial crises: Latin American answers to European questions
Eduardo Cavallo, Eduardo Fernandez-Arias, 17 October 2012
Many peripheral Eurozone countries are suffering from financial and competitiveness problems reminiscent of previous Latin American challenges. The analogy has been noticed many times.
A failsafe way to end the Eurozone crisis
Charles Wyplosz, 26 September 2011
The annual gathering of finance ministers and central bank governors at the IMF/World Bank meetings in Washington seems to have been an epiphany for Eurozone leaders. Finally, there seems to be agreement that their July 2011 agreement was insufficient (Reuters 2011).
Hans Gersbach, 2 April 2011
There is anything but a dearth of proposals on how banks and bank-related financial institutions could be more stringently regulated and monitored by the government with a view to avoiding the recurrence of a crippling crisis like the one we have been labouring under for the past two years (e.g.
Deposit insurance without commitment: Wall Street vs. Main Street
Russell Cooper, Hubert Kempf, 18 February 2011
The events which followed the subprime crisis, which started in August 2007, were shocking news to many economists. Bank runs were back!
Titian, Veronese, Caravaggio and their rivals: Evidence of competition in the market for altarpieces of the 17th century
Federico Etro, 4 November 2010
Art is often perceived, and sometimes defined, as handmade work that is valuable independently of its objective features and is the fruit of pure talent and inspiration independent from monetary and contractual incentives. This emphasis on the invaluable is even more pronounced for religious paintings by old masters as Titian, Veronese, or Caravaggio.
Financial regulation: Can we avoid another great recession?
John Van Reenen, 4 May 2010
The financial meltdown led to the worst post-war recession experienced by the UK and other advanced economies. The global Great Recession originated in the financial services sector, especially after the collapse of Lehman in September 2008.
Bankers’ bonuses: Claw-back clauses are critical
Brian Bell, John Van Reenen, 3 May 2010
Over the last decade, bonuses in the financial sector have exploded. In the UK, the vast majority of the gains at the top of the income distribution have come from such “bankers’ bonuses”. The bonus culture has been highlighted as one of the contributing factors to the financial crisis, and it is a hot political issue, particularly in the election-poised UK.
A regulatory architecture for cross-border banking groups
Stefano Micossi, 16 March 2010
Following the demise of Lehman Brothers, the debate on regulatory reform has led to the conclusion that large banking institutions must be broken up and their risk-taking activities limited by law along the lines of the ‘Volcker rule’ (Gros 2010).
Sudden financial arrest
Ricardo Caballero, 17 November 2009
“Sudden cardiac arrest (SCA) is a condition in which the heart suddenly and unexpectedly stops beating. When this happens, blood stops flowing to the brain and other vital organs…. SCA usually causes death if it’s not treated within minutes….”
– US National Institute of Health
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013
Holmes, McGrattan, Prescott
Beck, De Haas, Ongena
CEPR Policy Research
- The buyer margins of firms' exportsCarballo, Ottaviano, Volpe
- Commodity and Equity Markets: Some Stylized Facts from a Copula ApproachDelatte, Lopez
- Ethnic Unemployment Rates and Frictional MarketsGobillon, Rupert, Wasmer
- Finance and Poverty: Evidence from IndiaAyyagari, Beck, Hoseini
- The Manipulation of Basel Risk-WeightsMariathasan, Merrouche
- What’s wrong with Europe?Baldini, Manasse
- How the EZ crisis is permanently changing EU institutionsMicossi
- WTO 2.0: Global governance of supply-chain tradeBaldwin
- Is US economic growth over? Faltering innovation confronts the six headwindsGordon
- The economic crisis: How to stimulate economies without increasing public debtWood