A critical history of financial crises : why would politicians and regulators spoil financial giants? / Haim Kedar-Levy, Ben-Gurion University of the Negev, Israel.

Format:

Book

Author/Creator:

Kedar-Levy, Haim, lat, author.

Language:

English

Subjects (All):

Financial crises--History.

Financial crises.

Finance--Government policy--History.

Finance.

Financial institutions--Government policy--History.

Financial institutions.

Physical Description:

1 online resource (227 p.)

Place of Publication:

Covent Garden, London : Imperial College Press ; Hackensack, New Jersey : Distributed by World Scientific Publishing Company Pte. Limited, [2016]

Language Note:

English

Summary:

"While each financial crisis is unique and has its own special features, there are a lot of similarities in the dynamics leading to a crisis and also in their resolutions. Some of the financial crises are caused by the lack of appropriate regulation, but often the regulators were ignoring the signals of imminent crises, while serving implicitly or explicitly, the financial industry. In his book, Prof. Kedar-Levy is providing a fresh look at many famous financial crises around the globe, analysing their causes and effects. The special role of regulators is highlighted, including the "Capture Theory" in practice. This book is suitable for economist as well as for those interested in economic history, and for all those concerned with the stability of current international financial markets. Professor Dan GalaiThe Hebrew University, Jerusalem"-- Provided by publisher.

Contents:

Contents; Acknowledgements; Preface - Regulatory Capture; 1. What are Bubbles and Financial Crises?; 1.1 Introduction; 1.2 A Conceptual Framework of Financial Crises; 1.3 Bubbles and Models of Bubbles; 1.3.1 Rational models: Symmetric information; 1.3.2 Rational models: Asymmetric information; 1.3.3 Behavioral models: Heterogeneous beliefs; 1.3.4 Behavioral models: Limits of arbitrage; 1.4 Implications of Crashing Bubbles; 1.5 International Implications; 1.6 Conclusion; Additional Reading; 2. Key Properties of the Financial System and Financial Securities; 2.1 Introduction

2.2 Key Players in a Free-Market Economy2.3 Key Properties of Bonds; 2.4 Key Properties of Stocks; 2.5 Overview of the Financial System; Additional Reading; 3. Commercial Banking and Banking Crises; 3.1 Prologue; 3.2 Commercial Banks and the ' Money Multiplier'; 3.3 Bank Runs; 3.4 Central Banks as Lenders of Last Resort; 3.5 From Bank Runs to Banking Crises; 3.6 Basel Accords for Banking Regulation; 3.7 Epilogue; Additional Reading; 4. The Roaring Twenties and the US Bubble of 1929; 4.1 From Recession to Expansion; 4.2 Back into the Stock Market; 4.3 The 'New Economy' of the Roaring Twenties

4.4 The CrashAdditional Reading; 5. The 'Great Depression' in the US; 5.1 Introduction; 5.2 Rage; 5.3 New Rules; 5.4 The Political System; 5.5 The Gold Standard; 5.6 Economic Policy; 5.7 Global Effects; 5.8 Could the Government Do Better?; 5.9 The Dust Bowl; Additional Reading; 6. The Crisis of Confidence in Corporate America, 2001-2004; 6.1 Introduction; 6.2 Background; 6.3 Destructive Symbiosis between Managers, Politiciansand Auditors; 6.4 The Politics; 6.5 The Price; 6.6 Legal Response and the Need for Better Regulations; 6.7 Was the Enron Regulator Captured?; 6.8 Social Response

Additional Reading7. The Internet Bubble; 7.1 A 'New Economy', Again; 7.2 Vague Valuations; 7.3 Financial Analysts: Roles and Incentives; 7.4 Stock Options; 7.5 The Mania; 7.6 Where Were the Regulators?; Additional Reading; 8. When Banks Manipulate their Stock Prices: Israel's Systemic Banking Crisis; 8.1 Background; 8.2 An Economy in Transition; 8.3 The Motivation and Practice; 8.4 The Macroeconomic Environment; 8.5 The Crash Unfolds; 8.6 Ineffective Regulation; 8.7 The End; Additional Reading; 9. The Tequila Crisis and its Hangover; 9.1 Introduction

9.2 A Brief Explanation of International Accounts9.3 Mexico; 9.4 The Price of a Fixed Exchange Rate Policy; 9.5 The Tequila Crisis Unfolds; 9.6 Argentina's Bankruptcies; Additional Reading; 10. Japan and the East Asian Tigers; 10.1 Japan: From Feudal Agriculture to a Global Industry Leader; 10.2 Overheating with Easy Lending; 10.3 The Burst of the Bubble and its Cost; 10.4 The East Asian Tigers; 10.5 The Lessons; 10.5.1 Financial liberalization; 10.5.2 Hedging and fl exibility; 10.5.3 Speculators on the guard; Additional Reading; 11. The US Real Estate Bubble; 11.1 Background

11.2 Affordable Housing

Notes:

Description based upon print version of record.

Includes bibliographical references and index.

Description based on print version record.

ISBN:

1-908977-47-7