My interest in business cycles was rekindled by Professor Jim Ford, my mentor during the first part of my career at the
University of Birmingham. Since completing my PhD on business cycles in 1983, my lecturing and research had focussed
on money, banking and finance. Jim introduced me to Shackle’s much neglected work on business cycles, which is discussed
in Chapter 4 and emphasises the key role bank lending decisions play in the propogation of business cycles.
Bài giảng "Khủng hoảng tài chính - Financial crises" giới thiệu đến các bạn những nội dung về khủng hoảng tài chính, khủng hoảng tài chính tại các nước phát triển, khủng hoảng tài chính tại các nước đang phát triển. Với các bạn đang học chuyên ngành Tài chính - Ngân hàng thì đây là tài liệu tham khảo hữu ích.
The process of financial reporting, financial statement analysis, and valuation is intended
to help investors and analysts to deeply understand a firm’s profitability and risk and to use
that information to forecast future profitability and risk and ultimately value the firm,
enabling intelligent investment decisions. This process lies at the heart of the role of
accounting, financial reporting, capital markets, investments, portfolio management, and
corporate management in the world economy.
The calm before the storm? That question dominated the stage at the
seventh annual conference on emerging markets finance, cosponsored
by the World Bank and the Brookings Institution and held at Brookings in
late April 2005.
At the time of the conference, it had been a little less than eight years since
the onset of the Asian financial crisis, an event that had depression-like effects
throughout much of Asia and, for a time, seemed to threaten global economic
My interest in business cycles was rekindled by Professor Jim Ford, my mentor during the first part of my career at the University of Birmingham. Since completing my PhD on business cycles in 1983, my lecturing and research had focussed on money, banking and finance. Jim introduced me to Shackle’s much neglected work on business cycles, which is discussed in Chapter 4 and emphasises the key role bank lending decisions play in the propogation of business cycles.
The content of this book has become ever more relevant after the recent 2007–2009 and 2011 financial
crises, one consequence of which was greatly increased scepticism among investment professionals about
the received wisdom drawn from standard finance, modern portfolio theory and its later developments.
The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers.
Chapter 14 - Regulating the financial system. The purpose of this chapter is: To look at the sources and consequences of financial fragility focusing on the banking sector, to look at the institutional safeguards the government has built into the system in an attempt to avert financial crises, to study the regulatory and supervisory environment of the banking industry, to examine emerging approaches to regulation that focus on the safety of the financial system rather than on individual institutions.
Chapter 14 - Financial crises, panics, and unconventional monetary policy. After reading this chapter, you should be able to: Explain why financial crises are dangerous and why most economists see a role for the central bank as a lender of last resort, explain the role of leverage and herding in financial bubbles and how central bank policy can contribute to a financial bubble, explain why regulating the financial sector and preventing financial crises is so difficult,...
Chapter 31 - Financial crises, panics, and unconventional monetary policy. In this chapter you will: Explain why financial crises are dangerous and why most economists see a role for the central bank as a lender of last resort, explain the role of leverage and herding in financial bubbles and how central bank policy can contribute to a financial bubble, explain why regulating the financial sector and preventing financial crises is so difficult.
This paper examines how corporate financial structure shapes the impact of a financial crisis on the real sector by way of its effects on flows of funds and on corporate real expenditures.
It is one of the first papers to utilize extensive cross-country flow and balance sheet data and also to examine
subcomponents of GDP in the wake of banking and currency crises rather than focusing exclusively on aggregate GDP.
Although the growing literature on the importance of finance in economic growth contrasts
bank-based financial systems with market-based financial systems, little attention has been paid to the
role of the bond market. Correspondingly the role of the bond market has been very small relative to
that of the banking system or equity markets in most Asian emerging economies. We argue that the
underdevelopment of Asian bond markets has undermined the efficiency of these economies and
made them significantly more vulnerable to financial crises....
On September 15, 2008, Lehman Brothers, the fourth-largest U.S. investment
bank, filed for bankruptcy, marking the largest bankruptcy in U.S. history and
the burst of the U.S. subprime mortgage crisis. Concerns about the soundness of
U.S. credit and financial markets led to tightened global credit markets around
the world. Spreads skyrocketed. International trade plummeted by double digits,
as figure O.1 illustrates. Banks reportedly could not meet customer demand to
finance international trade operations, leaving a trade finance “gap” estimated at
around $25 billion.
In the surnmero f 1997, whent he Federal ReserveB anko f Bostons elected the topic for its fortysecond
annual economicc onference, manyp undits werea sking: "Is the business cycle dead, or
at least permanently dampened?"B y the time the Bank’s conference convenedi n June 1998,
the same pundits queried: "What caused the massive recessions in Asia?" and "Can the United
States remain ’an oasis of prosperity,’ as Fed Chairman Alan Greenspan termed it, while
economiesw orldwidea re under siege from financial crises?" Howq uickly things change!
BeyondS hocks:W hatC ausesB usiness Cycles ? t...
This study analyzes and provides empirical tests of early warning indicators
of banking and currency crises in emerging economies. The aim is
to identify key empirical regularities in the run-up to banking and currency
crises that would enable officials and private market participants
to recognize vulnerability to financial crises at an earlier stage. This, in
turn, should make it easier to motivate the corrective policy actions that
would prevent such crises from actually taking place.
Peaks in the financial cycle are closely associated with systemic banking crises (henceforth
“financial crises” for short). In the sample of seven industrialised countries noted above, all
the financial crises with domestic origin (ie, those that do not stem from losses on cross-
border exposures) occur at, or close to, the peak of the financial cycle. And the financial
crises that occur away from peaks in domestic financial cycles reflect losses on exposures to
foreign such cycles. Typical examples are the banking strains in Germany and Switzerland
The ability of individuals to access information has never been greater thanks to
the internet. In the case of the Financial Market Meltdown of 2008, this has been
less than helpful for the intelligent lay reader who just wants to make sense of
what has happened and where things might go. A Google search for “financial
crisis” yields about 24,000,000 entries, and the crisis has spawned many hundreds
of books by journalists, academics, and others.
In this note, we question their “interpretation” of the US historical track record, which is
incorporated in Reinhart and Rogoff (2009), where we present results of 224 historical banking
crises from around the world, including pre-2007 banking crises in the United States. Perhaps
part of the confusion in the recent “US is different” op-eds is a failure to distinguish systemic
financial crises from more minor ones and from regular business cycles. A systemic financial
crisis affects a large share of a country’s financial system.
The groups turn out to be quite distinct. Microfinance banks, and to a lesser extent credit
unions, are likely to have for-profit status. Nongovernmental organizations have non-profit
status. Non-bank financial institutions are in a broad category that includes both for-profits and
non-profits such as nongovernmental organizations that are specially regulated in return for
being allowed to assume additional roles, including, for some, taking deposits.
The financial crisis has, to put it mildly, seriously challenged our traditional approach to risk management.
Consequently, a number of individuals and institutions have advanced ideas for improving not only the analytical
framework, but also the status and relevance of risk management.
This report, not only reacts to the most recent episode (although we indeed reference many relevant examples),
it also attempts to address a deeper problem: the demonstrated inability of the global financial system to
constructively mitigate and deal with financial crises.