Choosing the Narrative: the Shadow Banking Crisis in Light of Covid
| Autor: | Marcus Miller |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Financial economics G24 Bank runs Epidemic and social contagion Judgement Bank run Technology and news shocks Commission Equity constraints HG Y8 Shock (economics) Credibility Financial crisis Z13 Economics Narrative Rating agencies G01 RA Shadow (psychology) Research Article Shadow banking G41 |
| Zdroj: | Open Economies Review |
| ISSN: | 1573-708X 0923-7992 |
| Popis: | Could experiencing a health pandemic aid in understanding the nature of financial crisis? It might, for example, help to discriminate between different narratives that claim to do so. In this spirit, two influential accounts of the near-collapse of shadow banking in the US financial crisis of 2008 are analysed: one developed by Mark Gertler and Nobuhiro Kiyotaki and the other presented by the Financial Crisis Inquiry Commission of the US Congress. Using a common two-sector framework, key features of these contrasting accounts of the market for banking services are presented, along with their corresponding diagnoses of what precipitated financial crisis. To see what the experience of Covid might imply about their relative credibility, four aspects of the current pandemic are considered: how it began from a small biological shock; how it gets spread by contagion; the significance of externalities; and how it may end with a vaccine. But the reader is left to form his or her own judgement. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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