The causes of the recent financial crisis and the role of central banks in avoiding the next one

Abstract

Financial crisis, Prudential regulation, Monetary policy, Systemic risk, JEL, G 28, E 52, E 58,

Is harmonization of legal rules an appropriate target? Lessons from the global financial crisis

“…Early models of locational competition were developed by Tiebout (1956), MacDougall (1960) and Kemp (1964). 20 For more detail see Wagner (2010), and Wagner and Berger (2004). These effects of globalization are regarded as driving forces for arguing for international policy coordination (see, e.g., Wagner 2009).…”

Influence of Governance on the Relationship Between Foreign Banks’ Penetration and Banking Stability

“…All the bank control variables are on average. Bank liquidity is measured by the ratio of a bank's liquid assets to total assets (LIQ), where highly liquid banks encounter less risk because they have excess reserves to cover losses in the case of a crisis (Wagner, 2010). We measure capitalization by using the ratio of equity capital to total assets (CAP) as most banks keep capital to buffer the default risk (Soedarmono, Machrouh, & Tarazi, 2013).…”

The Impact of Network Connectivity on Factor Exposures, Asset Pricing and Portfolio Diversification

“…We observe a convergence (on average) of the concentrated estimates to the true values with increasing sample sizes, as expected. 18 Secondly, we note that, with the data-generating process shown in equation (61), the linear factor model does not estimate the reduced-form betas as, by construction, they are time-varying: γ 1 = (I − RW t ) −1 β. Therefore, to evaluate the distance between those two values, we compute the distortionsγ 1 − (I − RW t ) −1 β and compare them to the distortions under the correctly specified model I −RW t…”