Publications

101 publications found, searching for 'Financial Regulation '

• Working Paper No. 1078 April 01, 2025

  “A Concentration of Private Power without Equal in History”

  William Van Lear, and Daniel Hutchinson
  Abstract

  This manuscript presents a detailed summary and reassessment of the 1941 final report of the Temporary National Economic Committee (TNEC). We portion the manuscript into four major parts: background, major themes, assessment of the report, and additional analysis and reflection. In the first section, we cover what compelled the government’s investigation and we identify the […]

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• Working Paper No. 1077 February 11, 2025

  A Critical Examination of the “China Collapse” Narrative

  Yan Liang
  Abstract

  Western media and academia have heralded the China collapse narrative. This paper provides a critical and balanced examination of the four challenges facing the Chinese economy—namely, deflation, debt, demographics, and de-coupling/de-risking. It argues that while deflationary pressure is present, consumer demand has been improving as the property market stabilized and policies to bolster domestic demand […]

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• Working Paper No. 1068 December 10, 2024

  Monetary Power and Vulnerability to Sovereign Debt Crises

  Karina Lima
  Abstract

  Originally issued as EDI Working Paper No. 17, March 2024 This paper challenges the prevailing view in the sovereign debt literature by arguing that sovereign debt markets, in many respects, behave similarly to other credit markets. These markets are hierarchical rather than flat, inherently hybrid in nature, blending elements of public order and private markets, […]

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• 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. 1015 February 20, 2023

  CBDC Next-Level: A New Architecture for Financial “Super-Stability” 

  Biagio Bossone, and Michael Haines
  Abstract

  Fractional reserve regimes generate fragile banking, and full reserve regimes (e.g., narrow banking) remove fragility at the cost of suppressing the role of banks as lenders. A Central Bank Digital Currency (CBDC) could provide safe money, but at the cost of potentially disrupting bank lending. Our aim is to avoid this potential disruption. Building on […]

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• Working Paper No. 999 January 18, 2022

  Structural Change, Productive Development, and Capital Flows

  Alberto Botta, Giuliano Toshiro Yajima, and Gabriel Porcile
  Abstract

  The outbreak of COVID-19 brought back to the forefront the crucial importance of structural change and productive development for economic resilience to economic shocks. Several recent contributions have already stressed the perverse relationship that may exist between productive backwardness and the intensity of the COVID-19 socioeconomic crisis. In this paper, we analyze the factors that […]

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• Public Policy Brief No. 150 June 03, 2020

  The Impact of Technological Innovations on Money and Financial Markets

  Jan Kregel, and Paolo Savona
  Abstract

  According to Senior Scholar Jan Kregel and Paolo Savona, attempting to maintain the status quo in the face of the introduction of some recent technological innovations—chiefly cryptocurrencies and associated instruments based on distributed ledger technology, the deployment of artificial intelligence, and the use of data science in financial markets—will create risks that increase instability and […]

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• Working Paper No. 947 February 06, 2020

  Ages of Financial Instability

  Mario Tonveronachi
  Abstract

  Starting from the mid-nineteenth century, this paper analyzes two periods of financial instability connected with financial globalization. The first culminates with the 1929 crisis, while the second characterizes the more recent experience starting from the 1970s. The period in between is divided into two subperiods. The first goes up to World War II and sees […]

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• Working Paper No. 908 June 01, 2018

  Twenty Years after the Fall of the Berlin Wall

  Walker F. Todd, and W. Lee Hoskins
  Abstract

  Many of the hopes arising from the 1989 fall of the Berlin Wall were still unrealized in 2010 and remain so today, especially in monetary policy and financial supervision. The major players that helped bring on the 2008 financial crisis still exist, with rising levels of moral hazard, including Fannie Mae, Freddie Mac, the too-big-to-fail […]

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• Policy Notes No. 2 July 07, 2017

  The Concert of Interests in the Age of Trump

  Jan Kregel
  Abstract

  If the Trump administration is to fulfill its campaign promises to this age’s “forgotten” men and women, Director of Research Jan Kregel argues, it should embrace the broader lesson of the 1930s: that government regulation and fiscal policy are crucial in addressing changes in the economic and financial structure that have exacerbated the problems faced […]

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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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• Book Series November 05, 2015

  Financial Regulation in the European Union

  Abstract

  Have past and more recent regulatory changes contributed to increased financial stability in the European Union (EU), or have they improved the efficiency of individual banks and national financial systems within the EU? Edited by Rainer Kattel, Tallinn University of Technology, Director of Research Jan Kregel, and Mario Tonveronachi, University of Siena, this volume offers […]

• Book Series November 05, 2015

  Why Minsky Matters: An Introduction to the Work of a Maverick Economist

  L. Randall Wray
  Abstract

  Perhaps no economist was more vindicated by the global financial crisis than Hyman P. Minsky (1919–1996). Although a handful of economists raised alarms as early as 2000, Minsky’s warnings began a half century earlier, with writings that set out a compelling theory of financial instability. Yet even today he remains largely outside mainstream economics; few […]

• Working Paper No. 851 October 28, 2015

  Money Creation under Full-reserve Banking

  Patrizio Lainà
  Abstract

  This paper presents a stock-flow consistent model+ of full-reserve banking. It is found that in a steady state, full-reserve banking can accommodate a zero-growth economy and provide both full employment and zero inflation. Furthermore, a money creation experiment is conducted with the model. An increase in central bank reserves translates into a two-thirds increase in […]

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• Working Paper No. 849 October 23, 2015

  Bank Leverage Ratios and Financial Stability

  Emilios Avgouleas
  Abstract

  Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels in the wake of the global financial crisis (GFC) were exceptionally thin, necessitating a string of costly […]

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• One-Pager No. 49 May 01, 2015

  Δανείζοντας στα τυφλά

  Matthew Berg
  Abstract

  Τα πρακτικά του 2008 της Ομοσπονδιακής Επιτροπής Ανοικτής Αγοράς παρέχουν ένα σπάνιο πορτραίτο του τρόπου με τον οποίον οι χαράκτες πολιτικής ανταποκρίθηκαν στην εξέλιξη της μεγαλύτερης χρηματοπιστωτικής κρίσης στον κόσμο μετά τη Μεγάλη Ύφεση του ΄30. Τα πρακτικά αποκαλύπτουν ότι η Ομοσπονδιακή Επιτροπή Ανοικτής Αγοράς δεν είχε ικανοποιητική κατανόηση των τεραστίων διαστάσεων που είχε λάβει […]

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• One-Pager No. 49 May 01, 2015

  Lending Blind

  Matthew Berg
  Abstract

  The 2008 Federal Open Market Committee (FOMC) transcripts provide a rare portrait of how policymakers responded to the unfolding of the world’s largest financial crisis since the Great Depression. The transcripts reveal an FOMC that lacked a satisfactory understanding of a shadow banking system that had grown to enormous proportions—an FOMC that neither comprehended the […]

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• Research Project Report April 06, 2015

  Reforming the Fed’s Policy Response in the Era of Shadow Banking

  Abstract

  This monograph is part of the Levy Institute’s Research and Policy Dialogue Project on Improving Governance of the Government Safety Net in Financial Crisis, a two-year project funded by the Ford Foundation. This is the fourth in a series of reports summarizing the findings of the Research and Policy Dialogue Project on Improving Governance of […]

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• One-Pager No. 48 February 11, 2015

  Μπορεί η μεταρρύθμιση του διεθνούς χρηματοπιστωτικού συστήματος να στηρίξει τις αναδυόμενες οικονομίες;

  Jan Kregel
  Abstract

  Η πολιτική απάντηση του αναπτυγμένου κόσμου στην πρόσφατη χρηματοπιστωτική κρίση προκάλεσε την αντίδραση της κυβέρνησης της Βραζιλίας, η οποία έκανε λόγο για κίνδυνο νομισματικών πολέμων, και έφερε την Ινδία στο σημείο να ζητά ενίσχυση του συντονισμού και συνεργασίας στον τομέα της χάραξης πολιτικής. Κινέζοι αξιωματούχοι έκαναν αναφορά για «εξωφρενικά προνόμια», φέρνοντας στο νου τις αναφορές […]

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• One-Pager No. 48 February 11, 2015

  Can Reform of the International Financial Architecture Support Emerging Markets?

  Jan Kregel
  Abstract

  The developed world’s policy response to the recent financial crisis has produced complaints from Brazil of “currency wars” and calls from India for increased policy coordination and cooperation. Chinese officials have echoed the “exorbitant privilege” noted by de Gaulle in the 1960s, and Russia has joined China as a proponent of replacing the dollar with Special Drawing Rights. However, none […]

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• Public Policy Brief No. 139 February 11, 2015

  Emerging Market Economies and the Reform of the International Financial Architecture

  Jan Kregel
  Abstract

  Emerging market economies are taking an ill-targeted and far too limited approach to addressing their ongoing problems with the international financial system, according to Senior Scholar Jan Kregel. In this policy brief, he explains why only a wholesale reform of the international financial architecture can adequately address these countries’ concerns. As a blueprint for reform, […]

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• Working Paper No. 833 February 11, 2015

  Emerging Markets and the International Financial Architecture

  Jan Kregel
  Abstract

  If emerging markets are to achieve their objective of joining the ranks of industrialized, developed countries, they must use their economic and political influence to support radical change in the international financial system. This working paper recommends John Maynard Keynes’s “clearing union” as a blueprint for reform of the international financial architecture that could address […]

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• Working Paper No. 829 January 22, 2015

  The Repeal of the Glass-Steagall Act and the Federal Reserve’s Extraordinary Intervention during the Global Financial Crisis

  Yeva Nersisyan
  Abstract

  Before the global financial crisis, the assistance of a lender of last resort was traditionally thought to be limited to commercial banks. During the crisis, however, the Federal Reserve created a number of facilities to support brokers and dealers, money market mutual funds, the commercial paper market, the mortgage-backed securities market, the triparty repo market, […]

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• Working Paper No. 829 January 22, 2015

  Η κατάργηση του νόμου Glass-Steagall και η έκτακτη παρέμβαση του Ομοσπονδιακού Αποθεματικού κατά τη διάρκεια της παγκόσμιας χρηματοοικονομικής κρίσης

  Yeva Nersisyan
  Abstract

  Πριν από την παγκόσμια χρηματοπιστωτική κρίση επικρατούσε η αντίληψη ότι η στήριξη του δανειστή έσχατης καταφυγής περιοριζόταν στις εμπορικές τράπεζες. Ωστόσο, κατά τη διάρκεια της κρίσης, η Ομοσπονδιακή Τράπεζα των ΗΠΑ δημιούργησε μια σειρά από μηχανισμούς για τη στήριξη των χρηματομεσιτών και των διαπραγματευτών, των αμοιβαίων κεφαλαίων, την εμπορική χρηματική αγορά, την αγορά ενυπόθηκων τίτλων […]

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