Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies
The recent global financial crisis has shaken the confidence of developed and developing countries alike in the very blueprint of financial and macro policies that underlie the western capitalist systems. In an effort to contain the crisis from spr...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090105103551 http://hdl.handle.net/10986/4005 |
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okr-10986-4005 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ALLOCATION OF CAPITAL AMOUNT OF CAPITAL ARBITRAGE ASSET MANAGEMENT ASSET POSITIONS ASSET PRICE ASSET PRICES BAILOUTS BALANCE SHEET BALANCE SHEETS BANK ACCESS BANK BRANCHES BANK LENDING BANK NATIONALIZATIONS BANK REGULATION BANKING CRISES BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BOND BUSINESS BORROWERS BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONS CAPITAL ADEQUACY CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL REQUIREMENTS CDS CENTRAL BANK CENTRAL BANKS CHECKS COLLATERAL CONFLICTS OF INTEREST CONTRACT ENFORCEMENT CONVERTIBILITY PLAN CREDIBILITY CREDIBILITY PROBLEMS CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT DEFAULT SWAPS CREDIT EXPANSION CREDIT GROWTH CREDIT RATING CREDIT RATINGS CREDIT RISK CREDITORS CURRENCY CURRENT ACCOUNT TRANSACTIONS DEBT DEBT INSTRUMENTS DEBT MARKETS DEFAULT RATES DEPOSIT DEPOSIT INSURANCE DEPOSIT MOBILIZATION DEPOSITOR DEPOSITORS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNT RATES DOMESTIC FINANCIAL MARKETS DOMESTIC INTEREST RATES DUE DILIGENCE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITY MARKET EXCHANGE RATE EXCHANGE RATES EXTERNAL BORROWING EXTERNAL DEBT FACE VALUE FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SHOCKS FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL CAPACITY FISCAL DEFICITS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE TRANSACTIONS FOREIGN FINANCING FOREIGN FUNDS FOREIGN LOANS FRAUD GOVERNMENT BANKS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GRACE PERIOD INCOME LEVELS INDIVIDUAL LOAN INFLATION INFORMATIONAL ASYMMETRIES INSTRUMENT INTANGIBLE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL INVESTORS INVESTMENT FLOWS INVESTMENT OPPORTUNITIES LENDERS LEVY LIQUID ASSETS LIQUIDITY LIQUIDITY CRISIS LIQUIDITY PROBLEMS LOAN LOAN CONTRACTS LOAN PORTFOLIO LOCAL FINANCIAL MARKETS LONG-TERM COSTS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET ECONOMY MARKET FAILURE MARKET INFORMATION MARKET OVERSIGHT MARKET PARTICIPANTS MARKET RISK MARKET SEGMENTATION MARKET VALUE MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITIES MONETARY AUTHORITY MONETARY FUND MONETARY POLICIES MONETARY POLICY MONEY SUPPLY MORAL HAZARD NONPERFORMING LOANS OFFSHORE MARKET OFFSHORE MARKETS OUTPUT LOSS OUTPUT LOSSES POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO CAPITAL PORTFOLIO INFLOWS PORTFOLIO INVESTMENT PRICE STABILITY PRICE VOLATILITY PRIVATE BANKS PRIVATE CREDITORS PRIVATE EQUITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE PARTIES PRODUCTIVE INVESTMENTS PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PROVISION OF CREDIT PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION PUBLIC FUNDS RATES OF RETURN REGULATORY AUTHORITIES REGULATORY STANDARDS REPAYMENT RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURNS RISK ASSESSMENTS RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK PREMIUMS SAFETY NET SAFETY NETS SECURITIES SHAREHOLDERS SMALL INVESTORS SOLVENCY STATE BANKS STOCK MARKET STOCK MARKET TRADING SUBORDINATED DEBT SUPERVISORY AUTHORITIES TAX TAX COLLECTION TRADE CREDIT TRANSACTION TRANSPARENCY UNENFORCEABLE CONTRACTS WARRANTS WEALTH EFFECT WEALTH EFFECTS |
| spellingShingle |
ACCOUNTING ALLOCATION OF CAPITAL AMOUNT OF CAPITAL ARBITRAGE ASSET MANAGEMENT ASSET POSITIONS ASSET PRICE ASSET PRICES BAILOUTS BALANCE SHEET BALANCE SHEETS BANK ACCESS BANK BRANCHES BANK LENDING BANK NATIONALIZATIONS BANK REGULATION BANKING CRISES BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BOND BUSINESS BORROWERS BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONS CAPITAL ADEQUACY CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL REQUIREMENTS CDS CENTRAL BANK CENTRAL BANKS CHECKS COLLATERAL CONFLICTS OF INTEREST CONTRACT ENFORCEMENT CONVERTIBILITY PLAN CREDIBILITY CREDIBILITY PROBLEMS CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT DEFAULT SWAPS CREDIT EXPANSION CREDIT GROWTH CREDIT RATING CREDIT RATINGS CREDIT RISK CREDITORS CURRENCY CURRENT ACCOUNT TRANSACTIONS DEBT DEBT INSTRUMENTS DEBT MARKETS DEFAULT RATES DEPOSIT DEPOSIT INSURANCE DEPOSIT MOBILIZATION DEPOSITOR DEPOSITORS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNT RATES DOMESTIC FINANCIAL MARKETS DOMESTIC INTEREST RATES DUE DILIGENCE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITY MARKET EXCHANGE RATE EXCHANGE RATES EXTERNAL BORROWING EXTERNAL DEBT FACE VALUE FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SHOCKS FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL CAPACITY FISCAL DEFICITS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE TRANSACTIONS FOREIGN FINANCING FOREIGN FUNDS FOREIGN LOANS FRAUD GOVERNMENT BANKS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GRACE PERIOD INCOME LEVELS INDIVIDUAL LOAN INFLATION INFORMATIONAL ASYMMETRIES INSTRUMENT INTANGIBLE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL INVESTORS INVESTMENT FLOWS INVESTMENT OPPORTUNITIES LENDERS LEVY LIQUID ASSETS LIQUIDITY LIQUIDITY CRISIS LIQUIDITY PROBLEMS LOAN LOAN CONTRACTS LOAN PORTFOLIO LOCAL FINANCIAL MARKETS LONG-TERM COSTS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET ECONOMY MARKET FAILURE MARKET INFORMATION MARKET OVERSIGHT MARKET PARTICIPANTS MARKET RISK MARKET SEGMENTATION MARKET VALUE MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITIES MONETARY AUTHORITY MONETARY FUND MONETARY POLICIES MONETARY POLICY MONEY SUPPLY MORAL HAZARD NONPERFORMING LOANS OFFSHORE MARKET OFFSHORE MARKETS OUTPUT LOSS OUTPUT LOSSES POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO CAPITAL PORTFOLIO INFLOWS PORTFOLIO INVESTMENT PRICE STABILITY PRICE VOLATILITY PRIVATE BANKS PRIVATE CREDITORS PRIVATE EQUITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE PARTIES PRODUCTIVE INVESTMENTS PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PROVISION OF CREDIT PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION PUBLIC FUNDS RATES OF RETURN REGULATORY AUTHORITIES REGULATORY STANDARDS REPAYMENT RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURNS RISK ASSESSMENTS RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK PREMIUMS SAFETY NET SAFETY NETS SECURITIES SHAREHOLDERS SMALL INVESTORS SOLVENCY STATE BANKS STOCK MARKET STOCK MARKET TRADING SUBORDINATED DEBT SUPERVISORY AUTHORITIES TAX TAX COLLECTION TRADE CREDIT TRANSACTION TRANSPARENCY UNENFORCEABLE CONTRACTS WARRANTS WEALTH EFFECT WEALTH EFFECTS Demirgüç-Kunt, Asli Servén, Luis Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies |
| relation |
Policy Research Working Paper ; No. 4807 |
| description |
The recent global financial crisis has
shaken the confidence of developed and developing countries
alike in the very blueprint of financial and macro policies
that underlie the western capitalist systems. In an effort
to contain the crisis from spreading, the authorities in the
US and many European governments have taken unprecedented
steps of providing extensive liquidity, giving assurances to
bank depositors and creditors that include blanket
guarantees, and structuring bail-out programs that include
taking large ownership stakes in financial institutions, in
addition to establishing programs for direct provision of
credit to non-financial institutions. Emphasizing the
importance of incentives and tensions between short term and
longer term policy responses to crisis management, this
paper draws on a large body of research evidence and country
experiences to discuss the implications of the current
crisis for financial and macroeconomic policies going forward. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Demirgüç-Kunt, Asli Servén, Luis |
| author_facet |
Demirgüç-Kunt, Asli Servén, Luis |
| author_sort |
Demirgüç-Kunt, Asli |
| title |
Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies |
| title_short |
Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies |
| title_full |
Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies |
| title_fullStr |
Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies |
| title_full_unstemmed |
Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies |
| title_sort |
are all the sacred cows dead? implications of the financial crisis for macro and financial policies |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090105103551 http://hdl.handle.net/10986/4005 |
| _version_ |
1764389443965288448 |
| spelling |
okr-10986-40052021-04-23T14:02:14Z Are All the Sacred Cows Dead? Implications of the Financial Crisis for Macro and Financial Policies Demirgüç-Kunt, Asli Servén, Luis ACCOUNTING ALLOCATION OF CAPITAL AMOUNT OF CAPITAL ARBITRAGE ASSET MANAGEMENT ASSET POSITIONS ASSET PRICE ASSET PRICES BAILOUTS BALANCE SHEET BALANCE SHEETS BANK ACCESS BANK BRANCHES BANK LENDING BANK NATIONALIZATIONS BANK REGULATION BANKING CRISES BANKING CRISIS BANKING SYSTEM BANKING SYSTEMS BANKRUPTCY BOND BUSINESS BORROWERS BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT TRANSACTIONS CAPITAL ADEQUACY CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL MOVEMENTS CAPITAL OUTFLOW CAPITAL OUTFLOWS CAPITAL REQUIREMENTS CDS CENTRAL BANK CENTRAL BANKS CHECKS COLLATERAL CONFLICTS OF INTEREST CONTRACT ENFORCEMENT CONVERTIBILITY PLAN CREDIBILITY CREDIBILITY PROBLEMS CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT DEFAULT SWAPS CREDIT EXPANSION CREDIT GROWTH CREDIT RATING CREDIT RATINGS CREDIT RISK CREDITORS CURRENCY CURRENT ACCOUNT TRANSACTIONS DEBT DEBT INSTRUMENTS DEBT MARKETS DEFAULT RATES DEPOSIT DEPOSIT INSURANCE DEPOSIT MOBILIZATION DEPOSITOR DEPOSITORS DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNT RATES DOMESTIC FINANCIAL MARKETS DOMESTIC INTEREST RATES DUE DILIGENCE ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITY MARKET EXCHANGE RATE EXCHANGE RATES EXTERNAL BORROWING EXTERNAL DEBT FACE VALUE FINANCIAL CONTAGION FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL FRAGILITY FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL SECTOR DEVELOPMENT FINANCIAL SHOCKS FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FISCAL CAPACITY FISCAL DEFICITS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE TRANSACTIONS FOREIGN FINANCING FOREIGN FUNDS FOREIGN LOANS FRAUD GOVERNMENT BANKS GOVERNMENT INVOLVEMENT GOVERNMENT OWNERSHIP GRACE PERIOD INCOME LEVELS INDIVIDUAL LOAN INFLATION INFORMATIONAL ASYMMETRIES INSTRUMENT INTANGIBLE INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL INVESTORS INVESTMENT FLOWS INVESTMENT OPPORTUNITIES LENDERS LEVY LIQUID ASSETS LIQUIDITY LIQUIDITY CRISIS LIQUIDITY PROBLEMS LOAN LOAN CONTRACTS LOAN PORTFOLIO LOCAL FINANCIAL MARKETS LONG-TERM COSTS MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET ECONOMY MARKET FAILURE MARKET INFORMATION MARKET OVERSIGHT MARKET PARTICIPANTS MARKET RISK MARKET SEGMENTATION MARKET VALUE MINIMUM CAPITAL REQUIREMENTS MONETARY AUTHORITIES MONETARY AUTHORITY MONETARY FUND MONETARY POLICIES MONETARY POLICY MONEY SUPPLY MORAL HAZARD NONPERFORMING LOANS OFFSHORE MARKET OFFSHORE MARKETS OUTPUT LOSS OUTPUT LOSSES POLICY RESPONSE POLICY RESPONSES POLITICAL ECONOMY PORTFOLIO CAPITAL PORTFOLIO INFLOWS PORTFOLIO INVESTMENT PRICE STABILITY PRICE VOLATILITY PRIVATE BANKS PRIVATE CREDITORS PRIVATE EQUITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE PARTIES PRODUCTIVE INVESTMENTS PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PROVISION OF CREDIT PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION PUBLIC FUNDS RATES OF RETURN REGULATORY AUTHORITIES REGULATORY STANDARDS REPAYMENT RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURNS RISK ASSESSMENTS RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK PREMIUMS SAFETY NET SAFETY NETS SECURITIES SHAREHOLDERS SMALL INVESTORS SOLVENCY STATE BANKS STOCK MARKET STOCK MARKET TRADING SUBORDINATED DEBT SUPERVISORY AUTHORITIES TAX TAX COLLECTION TRADE CREDIT TRANSACTION TRANSPARENCY UNENFORCEABLE CONTRACTS WARRANTS WEALTH EFFECT WEALTH EFFECTS The recent global financial crisis has shaken the confidence of developed and developing countries alike in the very blueprint of financial and macro policies that underlie the western capitalist systems. In an effort to contain the crisis from spreading, the authorities in the US and many European governments have taken unprecedented steps of providing extensive liquidity, giving assurances to bank depositors and creditors that include blanket guarantees, and structuring bail-out programs that include taking large ownership stakes in financial institutions, in addition to establishing programs for direct provision of credit to non-financial institutions. Emphasizing the importance of incentives and tensions between short term and longer term policy responses to crisis management, this paper draws on a large body of research evidence and country experiences to discuss the implications of the current crisis for financial and macroeconomic policies going forward. 2012-03-19T19:08:07Z 2012-03-19T19:08:07Z 2009-01-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090105103551 http://hdl.handle.net/10986/4005 English Policy Research Working Paper ; No. 4807 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper |