Marcus Miller
Dados Biográficos
| ID | 3604940 |
|---|---|
| NOME | Marcus Miller |
| PRENOMES | Marcus |
| SOBRENOME | Miller |
| ASSINATURA | MILLER M |
| AFILIAÇÕES | University of Warwick |
| ORCID | 0000-0003-1030-457X |
| VERIFICADO | Sim |
| TOTAL DE OBRAS | 25 |
| TOTAL DE CITAÇÕES | 35 |
| TOTAL COMO AUTOR | 25 |
| TOTAL COMO EDITOR | 0 |
| PRIMEIRO ANO DE PUBLICAÇÃO | 1985 |
| ANO MAIS RECENTE DE PUBLICAÇÃO | 2010 |
| ÍNDICE H | 3 |
Leverage and Asset Bubbles
An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism driving asset prices to 'overshoot' equilibrium when an asset bubble burst--threatening widespread insolvency and what Richard Koo calls a 'balance sheet recession'. Besides interest rates cuts, asset purchases and capital restructuring are key to crisis resolution. The usual bankruptcy procedures for doing this fail to internalis…
No Credit for Transition
A bstract The Stability and Growth Pact, adopted by members of the European Union,imposes tight limits on government deficits. But since the collapse of Communism,Europe has been faced with the problems of economies in transition: and reunifiedGermany—the leading economy of the EU—combines a prosperous western stateand an eastern economy in the process of transition. In a model where unions play akey role in wage bargaining and transition imposes…
Financial Crises
In the wake of the Mexican Crises of 1994/1995, Barry Eichengreen and Richard Portes came up with a simple and market‐friendly solution for countries in trouble financing their debts. It was to include ‘collective action clauses’ in sovereign debt contracts so as to enhance the capacity of creditors and debtors to resolve problems on their own. Although this idea, based on long established commercial practice in the London corporate debt market, …
Co‐ordination Failure, Moral Hazard and Sovereign Bankruptcy Procedures
We study a model of sovereign debt crisis that combines problems of creditor coordination and debtor moral hazard. Solving the sovereign debtor's incentives leads to excessive 'rollover failure' by creditors when sovereign default occurs. We discuss how the incidence of crises might be reduced by international sovereign bankruptcy procedures and relate this to the current debate on revising international financial architecture. Paper prepared for…
Moral Hazard and The US Stock Market
When the risk premium in the US stock market fell substantially, Shiller (2000) attributed this to a bubble driven by psychological factors. An alternative explanation is that the observed risk premium may be reduced by one‐sided intervention policy on the part of the Federal Reserve which leads investors into the erroneous belief that they are insured against downside risk. By allowing for partial credibility and state dependent risk aversion, w…
The Asian Financial Crisis
Sovereign Liquidity Crises
Journal Article Sovereign Liquidity Crises: The Strategic Case For a Payments Standstill Get access Marcus Miller, Marcus Miller University of Warwick Search for other works by this author on: Oxford Academic Google Scholar Lei Zhang Lei Zhang University of Warwick Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 110, Issue 460, January 2000, Pages 335–362, https://doi.org/10.1111/1468-0297.005…
Asset Bubbles, Leverage and ‘Lifeboats’
Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle – and in creating fragility in global financial markets? After a brief account of the nature of the East Asian crises of 1997/8, we use the framework of highly‐leveraged, fully‐collaterised firms due to Kiyotaki and Moore (1997) to explore the i…
Designing Monetary Policy when Unemployment Persists
This paper investigates how unemployment persistence affects the optimal delegation of monetary policy to an independent central banker (CB). Two opposing forces are shown to be at work: with more persistence, the government’s incentive to stabilize the economy is greater; but (if the CB is forward‐looking) its incentive to create inflation surprises is also greater. We show that, owing to the second effect, the government may wish not to delegat…
Shareholders and Stakeholders
Producing high technology output and supplying sophisticated services often involves costly investment in industry-specific skills. But the threat of poaching means that it is the individual 'stakeholder', not the firm, who must bear the cost. We investigate various mechanisms for funding human capital investment in an industry equilibrium framework where capital market imperfections would (in the absence of intervention) result in underinvestmen…
Hyperinflation and Stabilisation
Using a variant of the Cagan model with rational expectations, this paper shows that expected stabilisation can result in a budget deficit in excess of the maximum inflation tax. A cap on the deficit dampens inflation expectations and raises real balances thus increasing the yield of the inflation tax for any given rate of inflation. This study extends the work of Drazen and Helpman (1990) by including a stochastic budgetary process and using opt…
Oil Price Hikes and Development Triggers in Peace and War
Journal Article Oil Price Hikes and Development Triggers in Peace and War Get access Marcus Miller, Marcus Miller University of Warwick Search for other works by this author on: Oxford Academic Google Scholar Lei Zhang Lei Zhang University of Warwick Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 106, Issue 435, 1 March 1996, Pages 445–457, https://doi.org/10.2307/2235259 Published: 01 March …
Speculative Anticipations of Sterling's Return to Gold
The view held by Keynes, that there was a ‘speculative appreciation' of sterling prior to its return to the gold standard, has been challenged by Smith and Smith, who argue that expectations of return must have weakened the currency. We demonstrate, first that the positive but decreasing trend displayed in the exchange rate data is consistent with a pattern of autoregressive convergence in fundamentals; and second that this continues to be true w…
Financial Innovations and Market Volatility
List of Tables. List of Figures. Foreword. Author's Preface. Part I: Before the Storm: 1. Financial Innovation: The Past Twenty Years and the Next. 2. Liquidity and Market Structure. 3. Financial Innovations and Market Volatility. Part II: The Crash of 1987 and Its Aftermath: 4. Index Futures During the Crash of 1987. 5. The Crash of 1987 and the Crash of 1946. 6. The Crash of 1987: Bubble of Fundamental. 7. Equilibrium Relations Between Cash Mar…
Learning and Inflation Convergence in the Erm
Journal Article Learning and Inflation Convergence in the Erm Get access John Driffill, John Driffill Queen Mary and Westfield College and CEPR Search for other works by this author on: Oxford Academic Google Scholar Marcus Miller Marcus Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 103, Issue 417, 1 March 1993, Pages 369–378, https://doi.org/10.2307/223…
Inflation Convergence with Realignments in a Two-Speed Europe
Journal Article Inflation Convergence with Realignments in a Two-Speed Europe Get access Luisa Lambertini, Luisa Lambertini University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar Marcus Miller, Marcus Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar Alan Sutherland Alan Sutherland University of Warwick and CEPR Search for other works…
Blueprints for Exchange-Rate Management
List of Figures. List of Tables. Preface. List of Conference Participants. M. Miller, B. Eichengreen, and R. Portes, Editors' Introduction. Historical Perspectives: A. Giovannini, How Do Fixed-Exchange-Rate Regimes Work? Evidence from the Gold Standard, Bretton Woods and the EMS. B. Eichengreen, Discussion. S.N. Broadberry, Monetary Interdependence and Deflation in Britain and the United States between the Wars. P. Turner, Discussion. Theoretical…
Exchange Rate Bands with Price Inertia
We formulate a stochastic rational-expectations model of exchange rate determination in which there are random shocks to the process of sluggish price adjustment.We examine the effects of imposing limits upon the range of variation of both nominal and real exchange rates, and describe the intervention policies needed to defend the bands in each case.We consider the possibility that commitment to defend a particular nominal band may be less than f…
The European Monetary System
Blueprints for Exchange Rate Management
Journal Article Blueprints for Exchange Rate Management Get access Blueprints for Exchange Rate Management. Edited by MARCUS MILLER, BARRY EICHENGREEN and RICHARD PORTES. (London and San Diego: Academic Press, 1989. Pp. xiii + 329. £29.50 hardback. ISBN 0124970605.) M. J. Artis M. J. Artis University of Manchester Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 402, 1 September 1990…
Currency Bubbles Which Affect Fundamentals
Journal Article Currency Bubbles Which Affect Fundamentals: A Qualitative Treatment Get access Marcus H. Miller, Marcus H. Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar Paul Weller Paul Weller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 400, 1 April 1990, Pages 170–179, https://doi.or…
Plans to Solve the Problem of the Twin US Deficits
he macroeconomic policy mix adopted by the US under President Reagan was one of fiscal expansion without monetary accommodation; and this was associated with an extraordinary rise in the dollar. By the mid-1980s, the indicators of economic performance may have suggested reasonable US 'internal balance,' with unemployment falling to around 7 per cent and inflation about 3 per cent. But they also showed a balance of payments deficit of about 3 per …
The European Monetary System
Journal Article The European Monetary System Get access The European Monetary System. By FRANCESCO GIAVAZZI, STEFANO MICOSSI and MARCUS MILLER. (Cambridge and New York: Cambridge University Press, 1988. Pp. xx + 424. £35.00 hardback. ISBN 0521 36271 7.) J. G. Nellis J. G. Nellis Università di Pisa Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 99, Issue 396, 1 June 1989, Pages 496–497, https:…
Monetary Stabilization Policy in an Open Economy
This paper investigates optimal stabilization policy in a small open economy using a continuous time model in which inflation depends on future monetary policy as well as past inflation. The impact of monetary policy is assumed to operate via real interest rates and the real exchange rate and the setting of real interest rates is chosen so as to minimize quadratic costs of fluctuations in output and inflation, subject to varying expectations in t…
Dynamic Games and the Time Inconsistency of Optimal Policy in Open Economies
Agricultural and Food Policy, Research Methods/Statistical Methods
Sovereign Liquidity Crises
Journal Article Sovereign Liquidity Crises: The Strategic Case For a Payments Standstill Get access Marcus Miller, Marcus Miller University of Warwick Search for other works by this author on: Oxford Academic Google Scholar Lei Zhang Lei Zhang University of Warwick Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 110, Issue 460, January 2000, Pages 335–362, https://doi.org/10.1111/1468-0297.005…
Blueprints for Exchange Rate Management
Journal Article Blueprints for Exchange Rate Management Get access Blueprints for Exchange Rate Management. Edited by MARCUS MILLER, BARRY EICHENGREEN and RICHARD PORTES. (London and San Diego: Academic Press, 1989. Pp. xiii + 329. £29.50 hardback. ISBN 0124970605.) M. J. Artis M. J. Artis University of Manchester Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 402, 1 September 1990…
Leverage and Asset Bubbles
An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism driving asset prices to 'overshoot' equilibrium when an asset bubble burst--threatening widespread insolvency and what Richard Koo calls a 'balance sheet recession'. Besides interest rates cuts, asset purchases and capital restructuring are key to crisis resolution. The usual bankruptcy procedures for doing this fail to internalis…
Co‐ordination Failure, Moral Hazard and Sovereign Bankruptcy Procedures
We study a model of sovereign debt crisis that combines problems of creditor coordination and debtor moral hazard. Solving the sovereign debtor's incentives leads to excessive 'rollover failure' by creditors when sovereign default occurs. We discuss how the incidence of crises might be reduced by international sovereign bankruptcy procedures and relate this to the current debate on revising international financial architecture. Paper prepared for…
Moral Hazard and The US Stock Market
When the risk premium in the US stock market fell substantially, Shiller (2000) attributed this to a bubble driven by psychological factors. An alternative explanation is that the observed risk premium may be reduced by one‐sided intervention policy on the part of the Federal Reserve which leads investors into the erroneous belief that they are insured against downside risk. By allowing for partial credibility and state dependent risk aversion, w…
Designing Monetary Policy when Unemployment Persists
This paper investigates how unemployment persistence affects the optimal delegation of monetary policy to an independent central banker (CB). Two opposing forces are shown to be at work: with more persistence, the government’s incentive to stabilize the economy is greater; but (if the CB is forward‐looking) its incentive to create inflation surprises is also greater. We show that, owing to the second effect, the government may wish not to delegat…
Currency Bubbles Which Affect Fundamentals
Journal Article Currency Bubbles Which Affect Fundamentals: A Qualitative Treatment Get access Marcus H. Miller, Marcus H. Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar Paul Weller Paul Weller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 400, 1 April 1990, Pages 170–179, https://doi.or…
Asset Bubbles, Leverage and ‘Lifeboats’
Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle – and in creating fragility in global financial markets? After a brief account of the nature of the East Asian crises of 1997/8, we use the framework of highly‐leveraged, fully‐collaterised firms due to Kiyotaki and Moore (1997) to explore the i…
Oil Price Hikes and Development Triggers in Peace and War
Journal Article Oil Price Hikes and Development Triggers in Peace and War Get access Marcus Miller, Marcus Miller University of Warwick Search for other works by this author on: Oxford Academic Google Scholar Lei Zhang Lei Zhang University of Warwick Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 106, Issue 435, 1 March 1996, Pages 445–457, https://doi.org/10.2307/2235259 Published: 01 March …
Speculative Anticipations of Sterling's Return to Gold
The view held by Keynes, that there was a ‘speculative appreciation' of sterling prior to its return to the gold standard, has been challenged by Smith and Smith, who argue that expectations of return must have weakened the currency. We demonstrate, first that the positive but decreasing trend displayed in the exchange rate data is consistent with a pattern of autoregressive convergence in fundamentals; and second that this continues to be true w…
Exchange Rate Bands with Price Inertia
We formulate a stochastic rational-expectations model of exchange rate determination in which there are random shocks to the process of sluggish price adjustment.We examine the effects of imposing limits upon the range of variation of both nominal and real exchange rates, and describe the intervention policies needed to defend the bands in each case.We consider the possibility that commitment to defend a particular nominal band may be less than f…
Dynamic Games and the Time Inconsistency of Optimal Policy in Open Economies
Agricultural and Food Policy, Research Methods/Statistical Methods
No Credit for Transition
A bstract The Stability and Growth Pact, adopted by members of the European Union,imposes tight limits on government deficits. But since the collapse of Communism,Europe has been faced with the problems of economies in transition: and reunifiedGermany—the leading economy of the EU—combines a prosperous western stateand an eastern economy in the process of transition. In a model where unions play akey role in wage bargaining and transition imposes…
Inflation Convergence with Realignments in a Two-Speed Europe
Journal Article Inflation Convergence with Realignments in a Two-Speed Europe Get access Luisa Lambertini, Luisa Lambertini University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar Marcus Miller, Marcus Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar Alan Sutherland Alan Sutherland University of Warwick and CEPR Search for other works…
Monetary Stabilization Policy in an Open Economy
This paper investigates optimal stabilization policy in a small open economy using a continuous time model in which inflation depends on future monetary policy as well as past inflation. The impact of monetary policy is assumed to operate via real interest rates and the real exchange rate and the setting of real interest rates is chosen so as to minimize quadratic costs of fluctuations in output and inflation, subject to varying expectations in t…
Dynamic Games and the Time Inconsistency of Optimal Policy in Open Economies
Agricultural and Food Policy, Research Methods/Statistical Methods
Plans to Solve the Problem of the Twin US Deficits
he macroeconomic policy mix adopted by the US under President Reagan was one of fiscal expansion without monetary accommodation; and this was associated with an extraordinary rise in the dollar. By the mid-1980s, the indicators of economic performance may have suggested reasonable US 'internal balance,' with unemployment falling to around 7 per cent and inflation about 3 per cent. But they also showed a balance of payments deficit of about 3 per …
The European Monetary System
Journal Article The European Monetary System Get access The European Monetary System. By FRANCESCO GIAVAZZI, STEFANO MICOSSI and MARCUS MILLER. (Cambridge and New York: Cambridge University Press, 1988. Pp. xx + 424. £35.00 hardback. ISBN 0521 36271 7.) J. G. Nellis J. G. Nellis Università di Pisa Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 99, Issue 396, 1 June 1989, Pages 496–497, https:…
The European Monetary System
Blueprints for Exchange Rate Management
Journal Article Blueprints for Exchange Rate Management Get access Blueprints for Exchange Rate Management. Edited by MARCUS MILLER, BARRY EICHENGREEN and RICHARD PORTES. (London and San Diego: Academic Press, 1989. Pp. xiii + 329. £29.50 hardback. ISBN 0124970605.) M. J. Artis M. J. Artis University of Manchester Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 402, 1 September 1990…
Currency Bubbles Which Affect Fundamentals
Journal Article Currency Bubbles Which Affect Fundamentals: A Qualitative Treatment Get access Marcus H. Miller, Marcus H. Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar Paul Weller Paul Weller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 400, 1 April 1990, Pages 170–179, https://doi.or…
Blueprints for Exchange-Rate Management
List of Figures. List of Tables. Preface. List of Conference Participants. M. Miller, B. Eichengreen, and R. Portes, Editors' Introduction. Historical Perspectives: A. Giovannini, How Do Fixed-Exchange-Rate Regimes Work? Evidence from the Gold Standard, Bretton Woods and the EMS. B. Eichengreen, Discussion. S.N. Broadberry, Monetary Interdependence and Deflation in Britain and the United States between the Wars. P. Turner, Discussion. Theoretical…
Exchange Rate Bands with Price Inertia
We formulate a stochastic rational-expectations model of exchange rate determination in which there are random shocks to the process of sluggish price adjustment.We examine the effects of imposing limits upon the range of variation of both nominal and real exchange rates, and describe the intervention policies needed to defend the bands in each case.We consider the possibility that commitment to defend a particular nominal band may be less than f…
Inflation Convergence with Realignments in a Two-Speed Europe
Journal Article Inflation Convergence with Realignments in a Two-Speed Europe Get access Luisa Lambertini, Luisa Lambertini University of California, Berkeley Search for other works by this author on: Oxford Academic Google Scholar Marcus Miller, Marcus Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar Alan Sutherland Alan Sutherland University of Warwick and CEPR Search for other works…
Financial Innovations and Market Volatility
List of Tables. List of Figures. Foreword. Author's Preface. Part I: Before the Storm: 1. Financial Innovation: The Past Twenty Years and the Next. 2. Liquidity and Market Structure. 3. Financial Innovations and Market Volatility. Part II: The Crash of 1987 and Its Aftermath: 4. Index Futures During the Crash of 1987. 5. The Crash of 1987 and the Crash of 1946. 6. The Crash of 1987: Bubble of Fundamental. 7. Equilibrium Relations Between Cash Mar…
Learning and Inflation Convergence in the Erm
Journal Article Learning and Inflation Convergence in the Erm Get access John Driffill, John Driffill Queen Mary and Westfield College and CEPR Search for other works by this author on: Oxford Academic Google Scholar Marcus Miller Marcus Miller University of Warwick and CEPR Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 103, Issue 417, 1 March 1993, Pages 369–378, https://doi.org/10.2307/223…
Speculative Anticipations of Sterling's Return to Gold
The view held by Keynes, that there was a ‘speculative appreciation' of sterling prior to its return to the gold standard, has been challenged by Smith and Smith, who argue that expectations of return must have weakened the currency. We demonstrate, first that the positive but decreasing trend displayed in the exchange rate data is consistent with a pattern of autoregressive convergence in fundamentals; and second that this continues to be true w…
Oil Price Hikes and Development Triggers in Peace and War
Journal Article Oil Price Hikes and Development Triggers in Peace and War Get access Marcus Miller, Marcus Miller University of Warwick Search for other works by this author on: Oxford Academic Google Scholar Lei Zhang Lei Zhang University of Warwick Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 106, Issue 435, 1 March 1996, Pages 445–457, https://doi.org/10.2307/2235259 Published: 01 March …
Hyperinflation and Stabilisation
Using a variant of the Cagan model with rational expectations, this paper shows that expected stabilisation can result in a budget deficit in excess of the maximum inflation tax. A cap on the deficit dampens inflation expectations and raises real balances thus increasing the yield of the inflation tax for any given rate of inflation. This study extends the work of Drazen and Helpman (1990) by including a stochastic budgetary process and using opt…
Designing Monetary Policy when Unemployment Persists
This paper investigates how unemployment persistence affects the optimal delegation of monetary policy to an independent central banker (CB). Two opposing forces are shown to be at work: with more persistence, the government’s incentive to stabilize the economy is greater; but (if the CB is forward‐looking) its incentive to create inflation surprises is also greater. We show that, owing to the second effect, the government may wish not to delegat…
Shareholders and Stakeholders
Producing high technology output and supplying sophisticated services often involves costly investment in industry-specific skills. But the threat of poaching means that it is the individual 'stakeholder', not the firm, who must bear the cost. We investigate various mechanisms for funding human capital investment in an industry equilibrium framework where capital market imperfections would (in the absence of intervention) result in underinvestmen…
Sovereign Liquidity Crises
Journal Article Sovereign Liquidity Crises: The Strategic Case For a Payments Standstill Get access Marcus Miller, Marcus Miller University of Warwick Search for other works by this author on: Oxford Academic Google Scholar Lei Zhang Lei Zhang University of Warwick Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 110, Issue 460, January 2000, Pages 335–362, https://doi.org/10.1111/1468-0297.005…
Asset Bubbles, Leverage and ‘Lifeboats’
Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle – and in creating fragility in global financial markets? After a brief account of the nature of the East Asian crises of 1997/8, we use the framework of highly‐leveraged, fully‐collaterised firms due to Kiyotaki and Moore (1997) to explore the i…
The Asian Financial Crisis
Moral Hazard and The US Stock Market
When the risk premium in the US stock market fell substantially, Shiller (2000) attributed this to a bubble driven by psychological factors. An alternative explanation is that the observed risk premium may be reduced by one‐sided intervention policy on the part of the Federal Reserve which leads investors into the erroneous belief that they are insured against downside risk. By allowing for partial credibility and state dependent risk aversion, w…
No Credit for Transition
A bstract The Stability and Growth Pact, adopted by members of the European Union,imposes tight limits on government deficits. But since the collapse of Communism,Europe has been faced with the problems of economies in transition: and reunifiedGermany—the leading economy of the EU—combines a prosperous western stateand an eastern economy in the process of transition. In a model where unions play akey role in wage bargaining and transition imposes…
Financial Crises
In the wake of the Mexican Crises of 1994/1995, Barry Eichengreen and Richard Portes came up with a simple and market‐friendly solution for countries in trouble financing their debts. It was to include ‘collective action clauses’ in sovereign debt contracts so as to enhance the capacity of creditors and debtors to resolve problems on their own. Although this idea, based on long established commercial practice in the London corporate debt market, …
Co‐ordination Failure, Moral Hazard and Sovereign Bankruptcy Procedures
We study a model of sovereign debt crisis that combines problems of creditor coordination and debtor moral hazard. Solving the sovereign debtor's incentives leads to excessive 'rollover failure' by creditors when sovereign default occurs. We discuss how the incidence of crises might be reduced by international sovereign bankruptcy procedures and relate this to the current debate on revising international financial architecture. Paper prepared for…
Leverage and Asset Bubbles
An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism driving asset prices to 'overshoot' equilibrium when an asset bubble burst--threatening widespread insolvency and what Richard Koo calls a 'balance sheet recession'. Besides interest rates cuts, asset purchases and capital restructuring are key to crisis resolution. The usual bankruptcy procedures for doing this fail to internalis…
Economics (24 obras) · Monetary economics (12 obras) · Economic theories and models (9 obras) · Economic Theory and Policy (9 obras) · Miller (9 obras) · Political science (9 obras) · Global Financial Crisis and Policies (8 obras) · Macroeconomics (8 obras) · Monetary Policy and Economic Impact (8 obras) · Keynesian economics (7 obras)