Publications

5 publications found, searching for 'Lorenzo Esposito '

• Working Paper No. 1021 June 29, 2023

  Can It Be Prevented This Time?

  Giuseppe Mastromatteo, and Lorenzo Esposito
  Abstract

  Since the nineties, crises have punctuated financial markets, shattering the conventional wisdom about how these markets work and how to regulate them, and forcing a deep rethinking of the supervisory framework that, however, did not change much of the banks’ behavior and incentives. In particular, banking regulation did not face the nexus profitability-riskiness. Based on […]

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• Working Paper No. 972 September 30, 2020

  In the Long Run We Are All Herd

  Giuseppe Mastromatteo, and Lorenzo Esposito
  Abstract

  Since the 2008 crisis, the economics literature has shown a renewed interest in Keynes’s “beauty contest” (BC) as a fundamental aspect of the functioning of financial markets. We argue that to understand the importance of the BC, psychological and informational factors are of small importance, and a dynamic-structural approach should be followed instead: the BC […]

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• Working Paper No. 933 July 08, 2019

  Defaultnomics

  Giuseppe Mastromatteo, and Lorenzo Esposito
  Abstract

  The 2008 crisis created a need to rethink many aspects of economic theory, including the role of public intervention in the economy. On this issue, we explore the Barro-Ricardo equivalence, which has played a decisive role in molding the economic policies that fostered the crisis. We analyze the equivalence and its theoretical underpinnings, concluding that: […]

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• Working Paper No. 875 September 27, 2016

  Minsky at Basel

  Giuseppe Mastromatteo, and Lorenzo Esposito
  Abstract

  The global financial crisis shattered the conventional wisdom about how financial markets work and how to regulate them. Authorities intervened to stop the panic—short-term pragmatism that spoke volumes about the robustness of mainstream economics. However, their very success in taming the collapse reduced efforts to radically change the “big bank” business model and lessened the […]

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• Working Paper No. 855 November 30, 2015

  The Two Approaches to Money

  Giuseppe Mastromatteo, and Lorenzo Esposito
  Abstract

  The scientific reassessment of the economic role of the state after the crisis has renewed interest in Abba Lerner’s theory of functional finance (FF). A thorough discussion of this concept is helpful in reconsidering the debate on the nature of money and the origin of the business cycle and crises. It also allows a reevaluation […]

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