Tag: shadow banking

Learning to Think About Shadow Banking

In retrospect, it is easy to see why most observers didn’t see the crisis coming.  The crisis was a stress test of shadow banking, “money market funding of capital market lending”.  In most universities, including mine, monetary economics and financial economics are separate fields with their own specialized language and faculty, and the regulatory apparatus […]

Financialization versus Development? A money view of the 2015 UNCTAD Report

The BIS and the IMF have each weighed in from the center, representing the perspectives of central banks and central Treasuries respectively.  (Interestingly, they don’t agree, see here for a recent sample of the debate.)  Now comes the periphery.  The new Trade and Development Report of the United Nations Conference on Trade and Development is titled “Making […]

The bailouts of 2007-2009: the case of AIG

Now comes a symposium of five articles, published in the AEA outreach Journal of Economics Perspectives, several of which read clearly as a kind of apologia pro vita sua for the actions of the authors themselves.  The idea seems to be that, if only readers could be made to understand the conditions under which the […]

Exit strategy, Part One: ZIRP

The Fed has announced plans to raise rates in the imminent future, but the market does not believe it.  Why not?  Conventional wisdom appears to be that the Fed will chicken out, just as it did during the so-called Taper Tantrum.  The Fed has signaled its appreciation that “liftoff” will involve increased volatility, and has […]