The International Financial Crisis: Have the Rules of Finance Changed? (World Scientific Studies in International Economics)

The recent global financial crisis has caused massive upheavals worldwide. The papers in this volume analyze whether financial principles seem to have shifted in recent years, and what that may mean for international financial markets and regulation. What ''broke'' in the current crisis? Is there no ''playbook'' on how to respond to systemic crises? What is the optimal role of the state in dealing with crises? How should asset bubbles be addressed in the future? Do we need a major overhaul of governance in the industry? What means exist to address systemic crises? What reforms are needed? These and related issues are discussed by an impressive list of well-known scholars, policymakers and practitioners, with an emphasis on the implications for public policy I. Special addresses. The international financial crisis : Asset price exuberance and macroprudential regulation / Charles L. Evans, Federal Reserve Bank of Chicago. Back from the brink / Christina D. Romer, Council of Economic Advisers. Getting the new regulatory framework just right : Six questions for policymakers / Jose Vinals, International Monetary Fund. Longer days, fewer weekends / Kevin M. Warsh, Board of Governors of the Federal Reserve System. Banking regulation : Changing the rules of the game / Philipp M. Hildebrand, Swiss National Bank -- II. What broke? The root causes of the crisis. The causes of the financial crisis and the impact of raising capital requirements / Martin Neil Baily and Douglas J. Elliott, Brookings Institution. Origins of the subprime crisis / Charles W. Calomiris, Columbia Business School and National Bureau of Economic Research. The role of the financial sector in the great recession / Michael Mussa, Peterson Institute for International Economics. What broke? The root causes of the crisis / Edwin M. Truman, Peterson Institute for International Economics -- III. Containing a systemic crisis : Is there really no playbook? Regulating systemic risk / Masahiro Kawai, Asian Development Bank Institute, and Michael Pomerleano, World Bank. Dealing with the crises in a globalized world : Challenges and solutions / Vincent R. Reinhart, American Enterprise Institute. Systemic risk : Is there a playbook? / Robert K. Steel, Wells Fargo & Co -- IV. Dealing with the crisis : The role of the state. Banking on the state / Piergiorgio Alessandri and Andrew G. Haldane, Bank of England. Liquidity risk and Central Bank actions during the 2007-2009 crisis / Francesco Papadia, European Central Bank, and Tuomas Valimaki, Suomen Pankki. The role of the state in a crisis / Phillip L. Swagel, Georgetown University. Comments : Panel on the role of the state / Peter J. Wallison, American Enterprise Institute -- V. What to do about bubbles : Monetary policy and macroprudential regulation. Financial instability and macroeconomics : Bridging the gulf / Claudio Borio and Mathias Drehmann, Bank for International Settlements The global financial crisis has caused massive upheavals worldwide. This volume analyzes whether financial principles seem to have shifted, and what that may mean for international financial markets and regulation. It discusses these and related issues.