1

Reference List for Econ 492 (D Longworth) Fall 2012

I Key General References (Put on Reference for one-day loans)

Allen Franklin and Douglas Gale (2009) Understanding Financial Crises Oxford Oxford University Press httpbooksgooglecabooksid=Wpwj349UCo8Campprintsec=frontcoverampdq=Understanding+financial+crisesampsource=blampots=EkYLD8w37jampsig=vjZqPaqnwVerl6aVdNedDGZUURgamphl=enampsa=Xampei=ySs9UMPkOZGF0QHoz4D4AQampved=0CDAQ6AEwAAv=onepageampq=Understanding20financial20crisesampf=false (AG)

French Kenneth R Martin N Bailey et al (2010) The Squam Lake Report Fixing the Financial System Princeton Princeton University Press (SL)

Kindleberger Charles P and Robert Aliber (2011) Manias Panics and Crashes Sixth Edition Houndmills United Kingdom Palgrave Macmillan (KA) (Fifth edition 2005 is the one on reference in Queenrsquos library)

Reinhart Carmen and Kenneth Rogoff (2009) This Time is Different Eight Centuries of Financial Folly Princeton Princeton University Press (RR)

II Understanding Banks and the Financial System

AG Chapters 2 4 6

Brunnermeier Marcus Andrew Crockett Charles Goodhart Avinash D Persaud and Hyun Shin (2009) The Fundamental Principles of Financial Regulation Geneva Report on the World Economy 11 Geneva ICBM and CEPR (Chapters 1 and 2 deal with externalities and the rationale for regulation)

III Causes

General Descriptions

SL Chapter 1

AG Preface Chapter 1

KA Chapters 1 and 14

RR Chapters 1 10 13 14

Calomiris Charles W (2009) ldquoBanking Crises Yesterday and Todayrdquo Pew Financial Reform Task Force Briefing Papers8 httpwwwpewtrustsorguploadedFileswwwpewtrustsorgReportsFinancial_ReformPew-Calomiris-Banking-Crises-Yesterday-and-Todaypdf

Rapid credit growth (overall or sectoral)

KA Chapters 2-4

2

Minsky Hyman P (1982) ldquoThe Financial Instability Hypothesis Capitalistic Processes and the Behavior of the Economyrdquo in CP Kindleberger and J-P Laffargue eds Financial Crises Theory History and Policy Cambridge Cambridge University Press

Financial Deregulation and Financial Innovations

Fostel Ana and John Geanakoplos (2012) ldquoTranching CDS and Asset Prices How Financial Innovation Can Cause Bubbles and Crashesrdquo American Economic Journal Macroeconomics vol 4(1) pp 190-225 httpwwwaeaweborgarticlesphpdoi=101257mac41190

Reinhart Carmen M (2012) ldquoA Series of Unfortunate Events Common Sequencing Patterns in Financial Crisesrdquo NBER Working Paper 17941 March httpwwwnberorgpapersw17941

Correspondence to Easy Monetary Policy

RR Chapter 12

Taylor John B (2008) ldquoThe Financial Crisis and the Policy Responses An Empirical Analysis of What Went Wrongrdquo in A Festschrift in Honour of David Dodges Contributions to Canadian Public Policy Proceedings of a conference held by the Bank of Canada November 2008 httpwwwbankofcanadacawp-contentuploads201009taylor1pdf

Taylor John B (2009) Getting Off Track How Government Actions and Interventions Caused Prolonged and Worsened the Financial Crisis

Inappropriately valued exchange rate and poor macro policy

KA Chapter 8

AG Chapter 8

Correspondence to Capital Inflows and International Imbalances

KA Chapters 8-9

Eichengreen Barry (2004) Capital Flows and Crises MIT Press Chapter 1 can be found here httpmitpressmitedubookschapters0262550598chap1pdf

Obstfeld Maurice and Kenneth Rogoff (2009) ldquoGlobal Imbalances and the Financial Crisis Products of Common Causesrdquo paper prepared for the Federal Reserve Bank of San Francisco Asia Economic Policy Conference Santa Barbara CA October 18-20 2009 httpwwweconomicsharvardedufacultyrogofffilesGlobal_Imbalances_and_Financial_Crisispdf

Poor Risk Management

Fox Justin (2009) The Myth of the Rational Market New York New York HarpersCollins Publishers

Milne Frank (2009) ldquoThe Complexities of Financial Risk Management and Systemic Risksrdquo Bank of Canada Review Summer 15-29 httpwwwbankofcanadacawp-contentuploads201006milne1pdf

3

Milne Frank (2008) ldquoAnatomy of the Credit Crisis The Role of Faulty Risk Management Systemsrdquo CD Howe Institute Commentary No 269 July httpwwwcdhoweorgpdfcommentary_269pdf

Taleb Nassim Nicholas (2007) The Black Swan The Impact of the Highly Improbable New York Random House

Too Big to Fail

Goodlet Clyde (2010) ldquoToo Big to Fail A Misguided Policy in Times of Financial Turmoilrdquo CD Howe Institute Commentary No 311 October httpwwwcdhoweorgpdfCommentary_311pdf

Asymmetric payoffs (managers traders)

SL Chapter 6

Bubbles (which burst)

KA Chapters 5-6

AG Chapter 9

Akerlof George A and Robert J Shiller (2010) Animal Spirits How Human Psychology Drives the Economy and Why It Matters for Global Capitalism Princeton Princeton University Press

Committee on the Global Financial System (2006) ldquoHousing finance in the global financial marketrdquo CGFS Publication No 26 January httpwwwbisorgpublcgfs26pdf

Granziera Eleonora and Sharon Kozicki (2012) ldquoHouse Price Dynamics Fundamentals and Expectationsrdquo Bank of Canada Working Paper 2012-12 httpwwwbankofcanadacawp-contentuploads201204wp2012-12pdf

Shiller Robert J (2005) Irrational Exuberance Second Edition Princeton Princeton University Press

Shiller Robert J (2008) The Subprime Solution How Todayrsquos Global Financial Crisis Happened and What to Do about It Princeton Princeton University Press

Wang Pengfei and Yi Wen (2012) ldquoSpeculative Bubbles and Financial Crisesrdquo American Economic Journal Macroeconomics vol 4(3) pp 184-221

Types of financial crisis and their interrelationships

KA especially Chapters 9 and 14 and Appendix

Laeven Luc and Fabian Valencia (2012) ldquoSystemic Banking Crises Database An Updaterdquo IMF Working Paper WP12163 httpwwwimforgexternalpubsftwp2012wp12163pdf

Kaminsky G (1999) ldquoCurrency and banking crises the early warnings of distressrdquo IMF Working Paper WP99178 httpwwwimforgexternalpubsftwp1999wp99178pdf

Kaminsky G L and C M Reinhart (1999) ldquoThe twin crises the causes of banking and balance-of- payments problemsrdquo American Economic Review vol 89(3) pp 473ndash500 httpwwwaeaweborgarticlesphpdoi=101257aer893473

4

Reinhart Carmen M (2012) ldquoA Series of Unfortunate Events Common Sequencing Patterns in Financial Crisesrdquo NBER Working Paper 17941 March httpwwwnberorgpapersw17941

Reinhart Carmen and Kenneth S Rogoff (2008) ldquoBanking Crises An Equal Opportunity Menacerdquo mimeo December 17 httpwwweconomicsharvardedufacultyrogofffilesBanking_Crisespdf

Reinhart Carmen and Kenneth S Rogoff (2011) ldquoFrom Financial Crash to Debt Crisisrdquo American Economic Review V 101 August 1676-1706 httpwwweconomicsharvardedufacultyrogofffilesFrom_Financial_Crashpdf

IV Prediction

Bordo Michael Barry Eichengreen Daniela Klingebiel and Maria Soledad Martinez-Peria (2001) ldquoIs the Crisis Problem Growing More Severerdquo Economic Policy April Earlier version at httpsiteresourcesworldbankorgDECResourcescris_problem_more_severepdf has Appendix A entitled ldquoCrises Dates and Business Cycle Turning Pointsrdquo

Borio Claudio and Philip Lowe (2002) ldquoAsset prices financial and monetary stability exploring the nexusrdquo BIS Working Papers No 114 July httpwwwbisorgpublwork114pdf

Borio Claudio and Mathias Drehmann (2009) ldquoAssessing the risk of banking crises ndash revisitedrdquo BIS Quarterly Review March 29-46 httpunstatsunorgunsdnationalaccountworkshops2010moscowAC223-S38Bk1PDF

Borio Claudio and Mathias Drehmann (2009) ldquoTowards an operational framework for financial stability fuzzy measurement and its consequencesrdquo BIS Working Papers No 284 June httpwwwbisorgpublwork284pdf

Gourinchas Pierre-Olivier and Maurice Obstfeld (2012) ldquoStories of the Twentieth Century for the Twenty-Firstrdquo American Economic Journal Macroeconomics vol 4(1) pp 226-265 (See the extensive list of references in footnote 52) httpwwwaeaweborgarticlesphpdoi=101257mac41226

International Monetary Fund (2011) ldquoToward Operationalizing Macroprudential Policies When to Actrdquo Chapter 3 in Global Financial Stability Report September httpwwwimforgExternalPubsFTGFSR201102pdfch3pdf

Kaminsky G (1999) ldquoCurrency and banking crises the early warnings of distressrdquo IMF Working Paper WP99178 httpwwwimforgexternalpubsftwp1999wp99178pdf

Kaminsky G L and C M Reinhart (1999) ldquoThe twin crises the causes of banking and balance-of- payments problemsrdquo American Economic Review vol 89(3) pp 473ndash500 httpwwwaeaweborgarticlesphpdoi=101257aer893473

Schularick Moritz and Alan M Taylor (2009) ldquoCredit Booms Gone Bust Monetary Policy Leverage Cycles and Financial Crises 1870ndash2008rdquo NBER Working Paper No 15512 November httpwwwnberorgpapersw15512

RR especially Chapter 17 (but also Chapter 16 on composite measures of turmoil)

5

V Transmission

General

KA Chapter 5

AG Chapters 4-6

Illiquidity

Allen Franklin and Elena Carletti (2008) ldquoThe Role of Liquidity in Financial Crisesrdquo in Maintaining Stability in a Changing Financial System a symposium sponsored by the Federal Reserve Bank of Kansas City August 21-23 2008 httpwwwkansascityfedorgpublicatsympos2008AllenandCarletti031209pdf

Holmstrom Bengt and Jean Tirole (2011) Inside and Outside Liquidity Cambridge Mass The MIT Press

Tirole Jean (2011) ldquoIlliquidity and All Its Friendsrdquo Journal of Economic Literature V 49 No 2 287-325 Earlier version at httppapersssrncomsol3paperscfmabstract_id=1646818

Runs

AG Chapter 3

SL Chapter 1

Diamond DW and PH Dybvig (1983) Bank runs deposit insurance and liquidity Journal of Political Economy 91 (3) 401ndash419 Reprinted (2000) Fed Res Bank Mn Q Rev 24 (1) 14ndash23

Gorton Gary and Andrew Metrick (2010) ldquoSecuritized Banking and the Run on Repordquo mimeo November 9 httppapersssrncomsol3paperscfmabstract_id=1440752

Poszar Zoltan Tobias Adrian et al (2010) ldquoShadow Bankingrdquo FRB of New York Staff Report No 458 httppapersssrncomsol3paperscfmabstract_id=1645337

Shin Hyun Song (2009) ldquoReflections on Northern Rock The Bank Run that Heralded the Global Financial Crisisrdquo Journal of Economic Perspectives 23(1) 101-119 httpisitesharvardedufsdocsicbtopic470237filesarticles20spring202009Shin_2009pdf

Margin and liquidity spirals

Brunnermeier Markus (2009) ldquoDeciphering the Liquidity and Credit Crunch 2007-08rdquo Journal of Economic Perspectives 23(1) 77-100 httpwwwprincetonedu~markusresearchpapersliquidity_credit_crunchpdf

Brunnermeier Markus and Lasse Heje Pedersen (2009) ldquoMarket Liquidity and Funding Liquidityrdquo The Review of Financial Studies 22(6) 2201-2238 httpwwwprincetonedu~markusresearchpapersliquiditypdf

6

Geanakoplous John (2010) ldquoThe Leverage Cyclerdquo Cowles Foundation Discussion Paper 1715 R January httpcowleseconyaleeduPcdd17ad1715-rpdf

Fire sales

AG Chapter 44

Schleifer Andrei and Robert Vishny (2011) ldquoFire Sales in Finance and Macroeconomicsrdquo Journal of Economic Perspectives V 25 No 1 Winter 29-48 httppubsaeaweborgdoipdf101257jep25129

Interconnectedness and Contagion (Institutions and Countries)

KA Chapters 8 and 9

AG Chapter 10

RR Chapter 15

Forbes Kristin J (2012) ldquoThe Big lsquoCrsquo Identifying and Mitigating Contagionrdquo paper prepared for the 2012 Jackson Hole Symposium hosted by the Federal Reserve Bank of Kansas City August httpwebmitedukjforbeswwwPapersBig20C-final-08-09-12pdf

Gai Prasanna Andrew Haldane and Sujit Kapadia (2011) ldquoComplexity Concentration and Contagionrdquo 1 August forthcoming in Journal of Monetary Economics 58(5) httpwwwbankofenglandcoukpublicationsspeeches2011speech512paperpdf

Gauthier Ceacuteline Alfred Lehar and Moez Souissi (2010) ldquoMacroprudential Regulation and Systemic Capital Requirementsrdquo Bank of Canada Working Paper 2010-4 httpwwwbankofcanadacawp-contentuploads201005wp10-4pdf

Common Exposures

Macroeconomic effects (financial accelerator bank capital effect)

Bernanke Ben S (2007) ldquoThe Financial Accelerator and the Credit Channelrdquo Speech at The Credit Channel of Monetary Policy in the Twenty-first Century Conference Federal Reserve Bank of Atlanta Atlanta Georgia June 15 httpwwwfederalreservegovnewseventsspeechbernanke20070615ahtm

Bernanke Ben S and Mark Gertler (1989) Agency Costs Net Worth and Business Fluctuations American Economic Review vol 79 (March) pp 14-31 httpwwwjstororgpss1804770

Bernanke Ben S Mark Gertler and Simon Gilchrist (1999) The Financial Accelerator in a Quantitative Business Cycle Framework in Handbook of Macroeconomics Volume 1C Handbooks in Economics vol 15 Amsterdam Elsevier 1341-93 Earlier version at httppapersssrncomsol3paperscfmabstract_id=226200

Hall Robert E (2010) ldquoWhy Does the Economy Fall to Pieces After a Financial Crisisrdquo Journal of Economic Perspectives V 24 No 4 Fall 3-20 httpwwwstanfordedu~rehallJEP20paperpdf

7

Meh Ceacutesaire A and Kevin Moran (2010) The role of bank capital in the propagation of shocks Journal of Economic Dynamics and Control Elsevier vol 34(3) 555-576 March httpwwwbankofcanadacawp-contentuploads201009MehMoran-BankCapital-2010pdf

Woodford Michael (2010) ldquoFinancial Intermediation and Macroeconomic Analysisrdquo Journal of Economic Perspectives V 24 No 4 Fall 21-44 httppubsaeaweborgdoipdf101257jep24421

Woodford Michael and Vasco Curdia (2009) ldquoCredit Frictions and Optimal Monetary Policyrdquo Revised draft of paper prepared for the BIS annual conference ldquoWhither Monetary Policyrdquo Lucerne Switzerland June 26-27 2008 [Technical appendix]

Exacerbation by Zero Lower Bound on nominal interest rates

Amano Robert and Malik Shukayev (2010) ldquoMonetary Policy and the Zero Bound on Nominal Interest Ratesrdquo Bank of Canada Review Summer 3-10 httpwwwbankofcanadacawp-contentuploads201009amano_summer10pdf

Bernanke Ben S (2003) ldquoSome Thoughts on Monetary Policy in Japanrdquo Speech before the Japan Society of Monetary Economics Tokyo Japan May 31 httpwwwfederalreservegovboarddocsspeeches200320030531defaulthtm

Svensson L (2001) ldquoThe Zero Bound in an Open Economy A Foolproof Way of Escaping from a Liquidity Traprdquo Monetary and Economic Studies (Bank of Japan) 19 (Special edition) 277ndash312 httpwwwimesbojorjpenglishpublicationmes2001me19-s1-11pdf (See other papers in the same conference volume) httpwwwimesbojorjpenglishpublicationmesmes01htmlme19-S1

Woodford Michael and Gauti B Eggertsson (2003) The Zero Interest-Rate Bound and Optimal Monetary Policy Brookings Papers on Economic Activity 1 139ndash211 httpwwwnewyorkfedorgresearcheconomistseggertssonBrookingsPaperpdf

Connection to Sovereign Indebtedness

International Monetary Fund (2012) ldquoSovereigns Banks and Emerging Markets Detailed Analysis and

Policiesrdquo Chapter 2 in Global Financial Stability Report April Lane Philip R (2012) ldquoThe European Sovereign Debt Crisisrdquo Journal of Economic Perspectives vol

26(3) pp 49-68 httppubsaeaweborgdoipdfplus101257jep26349 (See also the appendix which contains detailed data on debt dynamics) httpwwwaeaweborgjepapp2603_Lane_apppdf

Reinhart Carmen M and Kenneth Rogoff (2011) ldquoFrom Financial Crash to Debt Crisisrdquo American

Economic Review V 101 August 1676-1706 Earlier version at httppapersssrncomsol3paperscfmabstract_id=1566345

8

What Comes After the Crisis (Especially Low GDP Growth) Cecchetti Stephen MS Mohanty and Fabrizio Zampolli (2010) ldquoAchieving Growth Amid Fiscal

Imbalances The Real Effects of Debtrdquo in Achieving Maximum Long-Run Growth Federal Reserve Bank of Kansas City Economic Policy Symposium in Jackson Hole Wyoming httpwwwkcfrborgpublicatsympos2011Cecchetti_finalpdf

Jordagrave Oscar Moritz HP Schularick and Alan M Taylor (2011) When Credit Bites Back Leverage

Business Cycles and Crises NBER Working Papers 17621 National Bureau of Economic Research Inc httppeoplevirginiaedu~amt7upapersw17621pdf

Reinhart Carmen M and Vincent R Reinhart (2010) ldquoAfter the Fallrdquo Macroeconomic Challenges The

Decade Aheadrdquo Proceedings of the Federal Reserve Bank of Kansas City Jackson Hole Symposium August 26-28 httpwwwkcfrborgpublicatsympos2010Reinhart_finalpdf

Reinhart Carmen M Vincent R Reinhart and Kenneth S Rogoff (2012) ldquoPublic Debt Overhangs

Advanced Economy Episodes Since 1800rdquo Journal of Economic Perspectives vol 26(3) pp 69-86 httppubsaeaweborgdoipdfplus101257jep26369 (See also Appendix Table 1 which summarizes the recent literature on debt and growth) httpwwwaeaweborgjepapp2603_reinhart_rogoff_apppdf

VI Policy Response to a Crisis

General (Deposit Insurance Bank Holidays Market shut-down Guarantees)

KA Chapter 10

SL Chapters 2-11

RR Chapter 17

Laeven Luc and Fabian Valencia (2012) ldquoSystemic Banking Crises Database An Updaterdquo IMF Working Paper WP12163 httpwwwimforgexternalpubsftwp2012wp12163pdf

Domestic Lender of Last Resort

KA Chapter 11

Central Bank Liquidity Policy

Bank of Canada (2004) ldquoBank of Canada Lender-of-Last Resort Policiesrdquo Bank of Canada Financial System Review December 49ndash55 httpwwwbankofcanadacawp-contentuploads201005policy_1204pdf

Committee on the Global Financial System (2008) ldquoCentral bank operations in response to the financial turmoilrdquo CGFS Report No 31 July httpwwwbisorgpublcgfs31pdf

9

Engert W J Selody and C Wilkins (2008) ldquoFinancial Market Turmoil and Central Bank Interventionrdquo Bank of Canada Financial System Review June 71ndash78 httpwwwbankofcanadacawp-contentuploads201005policy_1204pdf

Longworth David (2008) Work in Progress The Bank of Canadas Response to the Financial Turbulence Speech to the Canadian Association for Business Economics Kingston Ontario 26 August httpwwwbankofcanadaca200808speecheswork-progress-bank-canada-response

Longworth David (2010) Bank of Canada Liquidity Facilities Past Present and Future Speech to CD Howe Institute Toronto Ontario 17 February httpwwwbankofcanadaca201002speechesliquidity-facilities-past-present-future

Selody Jack and Carolyn Wilkins (2010) ldquoThe Bank of Canadarsquos Extraordinary Liquidity Policies and Moral Hazardrdquo Bank of Canada Financial System Review June 29-32 httpwwwbankofcanadacawp-contentuploads201112fsr-0610-selodypdf

Thornton Daniel L (2011) ldquoThe Effectiveness of Unconventional Monetary Policy The Term Auction Facilityrdquo Federal Reserve Bank of Kansas City Review NovemberDecember pp 439-454 httpresearchstlouisfedorgpublicationsreview1111439-454Thorntonpdf

Zorn Lorie Jack Selody and Carolyn Wilkins (2009) ldquoBank of Canada Liquidity Actions in Response to the Financial Market Turmoilrdquo Bank of Canada Review Autumn 3‐22 httpwwwbankofcanadacawp-contentuploads201006zornpdf

Monetary Policy including unconventional

Bank of Canada (2009) ldquoFramework for Conducting Monetary Policy at Low Interest Ratesrdquo Annex to Bank of Canada Monetary Policy Report April httpwwwbankofcanadacawp-contentuploads201003mpr230409pdf

Bernanke Ben (2012) ldquoMonetary Policy since the Onset of the Crisisrdquo Remarks at the Federal Reserve

Bank of Kansas City Economic Symposium August 31 httpwwwfederalreservegovnewseventsspeechbernanke20120831ahtm

Gagnon Joseph M Raskin J Remache and B Sack (2010) ldquoLarge-Scale Asset Purchases by the Federal

Reserve Did They workrdquo Federal Reserve Bank of New York Staff Reports no 441 httpwwwnyfrborgresearchstaff_reportssr441pdf

Joyce M A Lasaosa I Stevens and M Tong (2010) ldquoThe financial market impact of quantitative

easingrdquo Bank of England Working Paper No 393 httpwwwbankofenglandcoukpublicationsworkingpaperswp393pdf

Kimura T H Kobayashi J Muranaga and H Ugai (2003) ldquoThe Effect of the Increase in the Monetary

Base on Japanrsquos Economy at Zero Interest Rates An Empirical Analysisrdquo Bank for International Settlements Conference Series No 19 276-312 httpwwwbisorgpublbppdfbispap19pdf

Oda N and K Ueda (2005) ldquoThe Effects of the Bank of Japanrsquos Zero Interest Rate Commitment and

Quantitative Monetary Easing on the Yield Curve A Macro-Finance Approachrdquo Bank of Japan Working Paper No 5 httpwwwbojorjpenresearchwps_revwps_2005datawp05e06pdf

10

White William R (2012) ldquoUltra Easy Monetary Policy and the Law of Unintended Consequencesrdquo

Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute Working Paper No 126 August httpdallasfedorgassetsdocumentsinstitutewpapers20120126pdf

Woodford Michael (2012) ldquoMethods of Policy Accommodation at the Interest-Rate Lower Boundrdquo

paper prepared for the 2012 Jackson Hole Symposium sponsored by the Federal Reserve Bank of Kansas City August httpkansascityfedorgpublicatsympos2012mwpdfsm=jh083112-4

International Lender of Last Resort

KA Chapter 12

VII Prevention (Policies)

General

KA Chapter 15

Rajan Raghuram G (2010) Fault Lines Princeton Princeton University Press

Roubini Nouriel and Stephen Mihm (2011) Crisis Economics A Crash Course in the Future of Finance Updated with a new afterword New York Penguin

Macroprudential Policy

Macroprudential Approach

SL Chapters 2 11

Borio Claudio (2010) ldquoImplementing a macroprudential framework balancing boldness and realismrdquo Paper given at HKIMR-BIS conference Financial Stability Towards a Macroprudential Approachrdquo httpwwwbisorgrepofficepublhkimr20100712cpdf

Committee on the Global Financial System (2010) ldquoMacroprudential instruments and frameworks a stocktaking of issues and experiencesrdquo CGFS Papers No 38 May httpwwwbisorgpublcgfs38pdf

Galati Gabrielle and Richhild Moessner (2011) ldquoMacroprudential policymdasha literature reviewrdquo BIS Working Papers No 337 February httpwwwbisorgpublwork337pdf

Group of 30 (2010) Enhancing Financial Stability and Resilience Macroprudential Policy Tools and Systems for the Future httpwwwgroup30orgimagesPDFMacroprudential_Report_Finalpdf

G20 Working Group 1 (2009) ldquoEnhancing Sound Regulation and Strengthening Transparencyrdquo 25 March httprbidocsrbiorginrdocsPublicationReportPdfs20_010409pdf

Longworth David (2011a) ldquoRemarks on Macroprudential Policy Frameworksrdquo in ldquoMacroprudential regulation and policyrdquo Proceedings of a joint conference organized by the BIS and the Bank of Korea in Seoul on 17-18 January 2011 Monetary and Economic Department BIS BIS Papers 60 httpwwwbisorgpublbppdfbispap60pdf

11

Longworth David (2011b) ldquoA Survey of Macroprudential Policy Issuesrdquo mimeo March httpwww2carletoncaeconomicsccmswp-contentccms-filesbrownbag-paper-110329pdf

Longworth David (2011c) ldquoMacroprudential Policy and Financial Marketsrdquo paper prepared for a conference on ldquoThe Economics and Econometrics of Recurring Financial Market Crisesrdquo Viessmann European Research Centre Wilfrid Laurier University Waterloo October

Shin Hyun Song (2010) ldquoMacroprudential Policies Beyond Basel IIIrdquo 22 November httpwwwprincetonedu~hsshinwwwMacroprudentialMemopdf

Macroprudential Instruments

AG Chapter 7 (on being careful with regulation)

Bailliu Jeannine Ceacutesaire Meh and Yahong Zhang (2012) ldquoMacroprudential Rules and Monetary Policy when Financial Frictions Matterrdquo Bank of Canada Working Paper 2012-6 httpwwwbankofcanadacawp-contentuploads201202wp2012-06pdf

Bank of England (2009) ldquoThe role of macroprudential policy A Discussion Paperrdquo November httpwwwbankofenglandcoukpublicationsotherfinancialstabilityroleofmacroprudentialpolicy091121pdf

Brunnermeier Marcus Andrew Crockett Charles Goodhart Avinash D Persaud and Hyun Shin (2009) The Fundamental Principles of Financial Regulation Geneva Report on the World Economy 11 Geneva ICBM and CEPR

Dewatripont Mathias and Jean Tirole (1994) The Prudential Regulation of Banks Cambridge Mass The MIT Press

Goodhart Charles AE Anil K Kashyap Dimitrios P Tsomocos and Alexandros P Vardoulakis (2012) ldquoAn Integrated Framework for Multiple Financial Regulationsrdquo Prepared for the Board of the Federal Reserve System and International Journal of Central Banking Conference on ldquoCentral Banking Before During and After the Crisisrdquo March 23-24

Hanson Samuel G Anil K Kashyap and Jeremy C Stein (2011) ldquoA Macroprudential Approach to Financial Regulationrdquo Journal of Economic Perspectives V25 No 1 Winter 3-28 Also at httpwwweconomicsharvardedufacultysteinfilesAMacroprudentualApproachpdf

Kashyap Anil K Richard Berner and Charles AE Goodhart (2011) ldquoThe Macroprudential Toolkitrdquo mimeo 5 January httppapersssrncomsol3paperscfmabstract_id=1735445

Vives Xavier (2011) ldquoStrategic Complementarity Fragility and Regulationrdquo November httpwwwprincetoneduecontheorycenterpdfvives_SC-Fragility-and-Regulation-Princetonpdf

Higher capital and Counter-cyclical Capital Requirements (deals with common exposures and interconnectedness too)

12

Arjani Neville (2009) ldquoProcyclicality and Bank Capitalrdquo Bank of Canada Financial System Review June 33-39 (There are other articles on procyclicality in the same issue) httpwwwbankofcanadacawp-contentuploads201201fsr-0609-arjanipdf

Basel Committee on Banking Supervision (2010) ldquoBasel III A global regulatory framework for more resilient banks and banking systemsrdquo December httpwwwbisorgpublbcbs189pdf

Basel Committee on Banking Supervision (2010) ldquoGuidance for national authorities operating the countercyclical capital bufferrdquo December httpwwwbisorgpublbcbs187pdf

Basel Committee on Banking Supervision (2010) ldquoAn assessment of the long-term economic impact of stronger capital and liquidity requirementsrdquo August httpwwwbisorgpublbcbs173pdf

Hellwig Martin F (2010) ldquoCapital Regulation after the Crisis Business as Usualrdquo MPI Collective Goods Preprint No 201031 Available at SSRN httppapersssrncomsol3paperscfmabstract_id=1645224

Macroeconomic Assessment Group (2010) ldquoAssessing the macroeconomic impact of the transition to stronger capital and liquidity requirements Final Reportrdquo December httpwwwbisorgpublothp12pdf

Liquidity Requirements

Basel Committee on Banking Supervision (2010) ldquoBasel III International framework for liquidity risk measurement standards and monitoringrdquo December httpwwwbisorgpublbcbs188pdf

Perotti Enrico and Javier Suarez (2011) ldquoA Pigovian Approach to Liquidity Regulationrdquo International Journal of Central Banking vol 7(4) pp 3-41 httpwwwijcborgjournalijcb11q4a1pdf

Segura Anatoli and Javier Suarez (2010) ldquoLiquidity shocks roll-over risk and debt maturityrdquo mimeo November 24 httpwww2lseacukfmgeventsconferences2010financialIntermediation_Dec2010financialIntermediation_SuarezPaperpdf

Zelmer Mark and Carol Ann Northcott (2009) ldquoLiquidity Standards in a Macroprudential Contextrdquo Bank of Canada Financial System Review December 35-40 httpwwwbankofcanadacawp-contentuploads201201fsr-1209-northcottpdf

Counter-cyclical Margin requirements and Haircuts

Committee on the Global Financial System (2010) ldquoThe role of margin requirements and haircuts in procyclicalityrdquo CGFS Papers No 36 March httpwwwbisorgpublcgfs36pdf

Longworth David (2010) ldquoWarding Off Financial Market Failure How to Avoid Squeezed Margins and Bad Haircutsrdquo CD Howe Institute Backgrounder No 135 December httpwwwcdhoweorgpdfbackgrounder_135pdf

Stein Jeremy C (2010) ldquoSecuritization Shadow Banking and Financial Fragilityrdquo Daedalus 139 Fall 41-51 httpwwweconomicsharvardedufacultysteinfilesDaedalus-Sept-2010-finalpdf

13

Higher or countercyclical loan-to-value ratios for mortgages

Committee on the Global Financial System (2010) ldquoMacroprudential instruments and frameworks a stocktaking of issues and experiencesrdquo CGFS Papers No 38 May httpwwwbisorgpublcgfs38pdf

Lambertini Luisa et al (2011) ldquoLeaning against Boom-Bust cycles in Credit and Housing Pricesrdquo Center for Fiscal Policy EPFL Chair of International Finance (CFI) Working Paper No 01-2011

httppapersssrncomsol3paperscfmabstract_id=1789573

Wong Eric et al (2011) ldquoLoan-To-Value as a Macro-prudential ToolmdashHong Kongrsquos Experience and Cross-Country Evidencerdquo Hong Kong Monetary Authority Working Paper 012011 17 February httpwwwhkmagovhkmediaengpublication-and-researchresearchworking-papersHKMAWP11_01_fullpdf

Policies discouraging excessive capital inflowsof

Ostry Jonathan D Atish R Ghosh Karl Habermeier Marcos Chamon Mahvash S Qureshi and Dennis BS Reinhardt (2010) ldquoCapital Inflows The Role of Controlsrdquo IMF Staff Position Note SPN1004 19 February httpwwwimforgexternalpubsftspn2010spn1004pdf

Dealing with interconnectedness

Allen Franklin Ana Babus and Elena Carletti (2010) ldquoFinancial Connections and Systemic Riskrdquo NBER Working Paper 16177 httpwwwnberorgpapersw16177

Dealing with Too Big To Fail and contingent capital

DrsquoSouza Chris Toni Gravelle Walter Engert and Liane Orsi (2010) ldquoContingent Capital and Bail-In Debt Tools for Bank Resolutionrdquo Bank of Canada Financial System Review December 51-56 httpwwwbankofcanadacawp-contentuploads201112fsr-1210-dsouzapdf

Goodlet Clyde (2010) ldquoToo Big to Fail A Misguided Policy in Times of Financial Turmoilrdquo CD Howe

Institute Commentary No 311 October httpwwwcdhoweorgpdfCommentary_311pdf

System as a whole and shadow banking

Longworth David (2012) ldquoCombatting the Dangers Lurking in the Shadows The Macroprudential Regulation of Shadow Bankingrdquo CD Howe Institute Commentary no 361 September httpwwwcdhoweorgpdfCommentary_361pdf

Monetary Policy and Financial Stability Policy

Bank of Canada (2011) ldquoRenewal of the Inflation-Control Target Background Informationrdquo November httpwwwbankofcanadacawp-contentuploads201111background_nov11pdf

Boivin Jean Timothy Lane and Ceacutesaire Meh (2010) ldquoShould Monetary Policy Be Used to Counteract Financial Imbalancesrdquo Bank of Canada Review Summer 23-36 httpwwwbankofcanadacawp-contentuploads201009boivin_summer10pdf

14

Brunnermeier Markus K and Yuliy Sannikov (2012) ldquoRedistributive Monetary Policyrdquo paper prepared for the 2012 Jackson Hole Symposium hosted by the Federal Reserve Bank of Kansas City August httpscholarprincetonedumarkusfiles03f20Redistributive20Monetary20Policypdf

Carney Mark (2009) Some Considerations on Using Monetary Policy to Stabilize Economic Activity presentation to a symposium sponsored by the Federal Reserve Bank of Kansas City 22 August httpwwwbankofcanadaca200908speechessome-considerations-using-monetary-policy

Cecchetti Stephen G (2009) ldquoCrisis and Responses The Federal Reserve in the Early Stages of the Financial Crisisrdquo Journal of Economic Perspectives 23(1) 51-75 httppubsaeaweborgdoipdfplus101257jep23151

Kohn Donald L (2010) ldquoThe Federal Reserves Policy Actions during the Financial Crisis and Lessons for the Futurerdquo speech at Carleton University Ottawa Canada May 13 httpwwwfederalreservegovnewseventsspeechkohn20100513ahtm

Longworth David (2010) ldquoComments on lsquoThe Federal Reserversquos Policy Actions during the Financial Crisis and Lessons for the Futurersquo by Don Kohnrdquo Slides at CMFE Conference on ldquoEconomic and Financial Crisis Lessons from the Past and Reforms for the Futurerdquo Carleton University 13‐14 May httpwwwcarletoncacmfeactivitiesefc-conference1d-Longworthpdf

White William R (2009) ldquoShould Monetary Policy lsquoLean or Cleanrsquordquo Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute Working Paper No 34 August httpwwwdallasfedorgassetsdocumentsinstitutewpapers20090034pdf

Woodford Michael and Vasco Curdia (2009) ldquoConventional and Unconventional Monetary Policyrdquo Paper prepared for conference ldquoDebt Financial Markets and Monetary Policyrdquo Federal Reserve Bank of St Louis October 15-16 2009 httpresearchstlouisfedorgpublicationsreview1007Curdiapdf

Woodford Michael and Vasco Curdia (2010) ldquoThe Central-Bank Balance Sheet as an Instrument of Monetary Policyrdquo Journal of Monetary Economics forthcoming httpnyfedeconomistsorgcurdiaBalanceSheetpdf

Woodford Michael (2010) ldquoFinancial Intermediation and Macroeconomic Analysisrdquo Journal of Economic Perspectives httppubsaeaweborgdoipdf101257jep24421

Woodford Michael (2010) ldquoInflation Targeting and Financial Stabilityrdquo a presentation at the conference ldquoThe Future of Monetary Policyrdquo EIEF Rome September 30-October 1 httpwwwcolumbiaedu~mw2230ITFinStabpdf

VIII References on particular crises

US Crises

Johnson Simon and James Kwak (2010) 13 Bankers The Wall Street Takeover and the Next Financial Meltdown New York Pantheon Books

15

The Great Depression

Bernanke Ben S (2000) Essays on the Great Depression Princeton Princeton University Press httpbooksgooglecabooksid=tGiktQc6yWMCampprintsec=frontcoverampdq=Great+Depressionamphl=enampei=lywnTcj1C8eJnAflyKTIAQampsa=Xampoi=book_resultampct=resultampresnum=2ampved=0CDMQ6AEwAQv=onepageampqampf=false

Friedman Milton and Anna Jacobson Schwarz (2008) The great contraction 1929-1933 Princeton Princeton University Press httpbooksgooglecabooksid=7zMUAQAAIAAJampq=Great+Contraction+Friedmanampdq=Great+Contraction+Friedmanamphl=enampei=1C4nTe7NDsSSnwentPjsAQampsa=Xampoi=book_resultampct=resultampresnum=2ampved=0CCoQ6AEwAQ

Temin Peter (1991) Lessons from the Great Depression Cambridge MA Massachusetts Institute of Technology httpbooksgooglecabooksid=squLnSDrJ4ECampprintsec=frontcoverampdq=Great+Depressionamphl=enampei=SS0nTeOPHIrZnAfKmY3_AQampsa=Xampoi=book_resultampct=resultampresnum=6ampved=0CEIQ6AEwBTgUv=onepageampqampf=false

The Japanese Crisis

Posen Adam (2010) ldquoThe realities and relevance of Japanrsquos great recessionmdashNeither ran nor rashomonrdquo STICERD public lecture LSE May 24 httpwwwbankofenglandcoukpublicationsspeeches2010speech434pdf

The Asian Crisis

Eichengreen Barry (2004) Capital Flows and Crises MIT Press Chapter 9 ldquoUnderstanding Asiarsquos Crisisrdquo

The Recent Crisis

KA Chapters 14 and 15

SL Chapter 1

RR Chapters 13 and 15

Bernanke Ben S (2012) ldquoSome Reflections on the Crisis and the Policy Responserdquo speech at the Conference on ldquoRethinking Finance Perspectives on the Crisisrdquo New York New York April 13 httpwwwfederalreservegovnewseventsspeechbernanke20120413ahtm

Gorton Gary and Andrew Metrick (2012) ldquoGetting up to Speed on the Financial Crisis A One-Weekend-Readerrsquos Guiderdquo Journal of Economic Literature vol 50(1) pp 128-150 httpwwwaeaweborgarticlesphpdoi=101257jel501128

Lo Andrew W (2012) ldquoReading about the Financial Crisis A 21-Book Reviewrdquo Journal of Economic Literature vol 50(1) pp 151-178 httpwwwargentumluxorgdocumentsJEL_6pdf

16

Mishkin Frederic S (2011) ldquoOver the Cliff From the Subprime to the Global Financial Crisisrdquo Journal of Economic Perspectives V 25 No 1 Winter 49-70 httppubsaeaweborgdoipdfplus101257jep25149

Reinhart Vincent (2011) ldquoA Year of Living Dangerously The Management of the Financial Crisis in 2008rdquoJournal of Economic Perspectives V 25 No1 Winter 71-90 httppubsaeaweborgdoipdf101257jep25171

IX Financial Stability Reports on the Recent Crisis (and some earlier crises)

Bank for International Settlements Annual Report httpwwwbisorgpublarpdfar2011ehtm

Bank of Canada Financial System Review httpwwwbankofcanadacaenfsrindexhtml

Bank of England Financial Stability Report httpwwwbankofenglandcoukpublicationsfsrindexhtm

European Central Bank Financial Stability Review httpwwwecbintpubfsrhtmlindexenhtml

International Monetary Fund Global Financial Stability Report httpwwwimforgexternalpubsftGFSRindexhtm

International Monetary Fund World Economic Outlook httpwwwimforgexternalpubsftweo201101indexhtm

X ldquoPopularrdquo books on financial crises (for light and background reading onlymdashtypically not good references for a research paper)

History

Ferguson Niall (2008) The Ascent of Money A Financial History of the World New York The Penguin Press

The Recent Crisis

Lewis Michael (2011) Boomerang Travels in the New Third World New York WW Norton amp Co

Lewis Michael (2011) The Big Short Inside the Doomsday Machine New York WW Norton amp Co

Paulson Henry M (Jr) (2010) On the Brink Inside the Race to Stop the Collapse of the Global Financial System New York Business Plus

Sorkin Andrew Ross (2010) Too Big to Fail New York Penguin Books

Soros George (2009) The Crash of 2008 and What it Means New York Public Affairs

Wessel David (2009) In Fed We Trust New York Crown Business

XI Data Series

American Economic Association All AEA journals now require authors to have a data appendix that is available electronically AEA Journals include the American Economic Review Journal of Economic Perspectives American Economic Journal Microeconomics and American Economic Journal Macroeconomics

17

Bank for International Settlements banking statistics (cross-border) securities issuance external debt statistics property price statistics (residential commercial land 42 countries) httpwwwbisorgstatisticsindexhtm

Bank for International Settlements Data that underlay studies by Borio and Drehmann (contact instructor)

Bank of Canada statistics httpwwwbankofcanadacarates

Bank of Canada Banking and Financial Statistics (especially Tables E2 and K7 on credit) httpwwwbankofcanadacapublications-researchperiodicalsbfs

Bank of England (UK) httpwwwbankofenglandcoukstatisticsindexhtm

Bank of Japan httpwwwstat-searchbojorjpindex_enhtml

Bank of Spain data httpappbdeestsi_wwwpaginaBienvenidadoidioma=en

Bloomberg terminal in basement of Goodes Hall for daily data on interest rates and securities

Bordo Eichengreen Klingebiel and Martinez Peria 2001 ldquoIs the Crisis Problem Growing More Severerdquo Appendix A has crises data and business cycle turning points since 1880 httpsiteresourcesworldbankorgDECResourcescris_problem_more_severepdf

Canadian time series data at CANSIM CHASS requires Queenrsquos IP address (Queenrsquos library site)

CBOT VIX (volatility) data httpwwwcboecommicrovixhistoricalaspx

Central Bank of Iceland data httpwwwsedlabankiisPageID=548

Central Bank of Ireland data httpwwwcentralbankiePOLSTATSSTATSPagesdefaultaspx

DRI Basic Economics CHASS (US economic data) requires Queenrsquos IP address (Queenrsquos library site)

European Central Bank httpwwwecbintstatshtmlindexenhtml

Financial Crisis Timeline (recent crisis) (FRB St Louis) httptimelinestlouisfedorgindexcfmp=timeline

Hong Kong monetary authority data httpwwwinfogovhkhkmaengstatisticsindexhtm

IMF databases (includes balance of payments and International Financial Statistics) httpwwwimforgexternaldatahtm From a Queenrsquos IP address httpwwwimfstatisticsorg

IMF Systemic Crises Database (1970-2011) httpwwwimforgexternalpubscatlongresaspxsk=260150

Moodyrsquos Investors Service (publicationsmdashGoogle them as they are found on various sites)

ldquoSovereign Default and Recovery Rates 1983-2010rdquo

ldquoCorporate Default and Recovery Rates 1920-2010rdquo

18

OECD Economic Outlook 88 Annex Tables httpwwwoecdorgdocument6103343en_2649_34573_2483901_1_1_1_100html

OECD iLibrary (from a Queenrsquos IP address)

OECD statistical extracts httpstatsoecdorgIndexaspx

Reinhart and Rogoff data appendixes in This Time is Different Zipped data file for their ldquoFrom Financial Crash to Debt Crisisrdquo is available at httpwwwaeaweborgissuephpdoi=101257aer1015

Reinhart Chartbook of 70 countries used in ldquoFrom Financial Crash to Debt Crisisrdquo was published as ldquoThis Time is Different Chartbook Country Histories on Debt Default and Financial Crisesrdquo National Bureau of Economic Research Working Paper 15815 Earlier version (3 March 2010) at httpwwwprincetonedueconomicsseminar-schedule-by-progmacro-s10papersReinhardt-Chartbookpdf

Robert Shiller data on house prices and equity prices httpwwweconyaleedu~shillerdatahtm

US capital flow data US Department of the Treasury Treasury International Capital (TIC) data httpwwwtreasurygovresource-centerdata-chart-centerticPagesindexaspx

US FDIC data on bank failures and assistance transactions commercial bank reports savings institution reports httpwww2fdicgovhsob

US Federal Reserve Board of Governors including commercial banking statistics (includes credit) httpwwwfederalreservegoveconresdatareleasesstatisticsdatahtm

US Federal Reserve Economic Data (FRED) httpresearchstlouisfedorgfred2

US FHFA data on the risk characteristics and performance of single-family mortgages 2001-2008 httpwwwfhfagovDefaultaspxPage=313

US RealtyTrac data on mortgage foreclosures httpwwwrealtytraccomtrendcenter

World Bank data (includes external debt) httpdataworldbankorgindicator

NOTE For graphs of financial data see IMFrsquos Global Financial Stability Report and Bank of Canadarsquos Financial System Review (various issues during the crisis)