The Challenge of Financial Stability
A New Model and its Applications
Published on 30. April 2012
Book
Hardback
368 pages
978-1-84720-894-1 (ISBN)
Description
The achievement of financial stability is one of the most pressing issues today. This timely and innovative book provides an analytical framework to assess financial (in)stability as an equilibrium phenomenon compatible with the orderly functioning of a modern market economy. The authors expertly show how good regulatory policy can be implemented and that its effects on the real as well as the nominal side of the economy can be properly analyzed. The core of their approach is to take realistic account of the interaction between endogenous default, agent heterogeneity and money and liquidity, and suggest how a quantifiable metric of financial fragility could be developed.
This insightful book will serve as a basis for future work on financial stability management for both academics and policy makers and provide guidance on how to undertake crisis prevention and resolution.
This insightful book will serve as a basis for future work on financial stability management for both academics and policy makers and provide guidance on how to undertake crisis prevention and resolution.
Reviews / Votes
'Without doubt, the Goodhart and Tsomocos framework of endogenous default with credit chain is part of a new paradigm for explaining the current financial crisis which is worth betting on it.' -- Jean-Bernard Chatelain, Zeitschrift fuer NationaloekonomieMore details
Language
English
Place of publication
Cheltenham
United Kingdom
Target group
Professional and scholarly
Dimensions
Height: 234 mm
Width: 156 mm
ISBN-13
978-1-84720-894-1 (9781847208941)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Persons
Charles A.E. Goodhart, Emeritus Professor of Banking and Finance, and long-standing member of the Financial Markets Group, at the London School of Economics, UK and Dimitrios P. Tsomocos, Professor University Reader in Financial Economics and Fellow in Management, Said Business School and St. Edmund Hall, University of Oxford, UK
Content
Contents:
1. Introduction
Charles A.E. Goodhart and Dimitrios P. Tsomocos
PART I: OVERVIEW
2. 'Analysis of Financial Stability', Charles A.E. Goodhart and Dimitrios P. Tsomocos in Pierre L. Siklos, Martin T. Bohl and Mark E. Bohar (eds), Challenges in Central Banking: The Current Institutional Environment and Forces Affecting Monetary Policy, Cambridge, UK: Cambridge University Press, 2010, pp.121-45
3. 'Evaluation of Macroeconomic Models for Financial Stability Analysis', Gunnar Bardsen, Kjersti-Gro Lindquist and Dimitrios P. Tsomocos, Journal of World Economic Review, 3 (1), January-June 2008, 7-32
PART II: THEORY
4. 'Equilibrium Analysis, Banking and Financial Instability', Dimitrios P. Tsomocos, Journal of Mathematical Economics, 39, 2003, 619-55
5. 'A Model to Analyse Financial Fragility', with Pojanart Sunirand, Economic Theory, 27, 2006, 107-42
6. 'On Modelling Endogenous Default', Dimitrios P. Tsomocos and Lea Zicchino, OFRC-fe, 2005, 1-19
7. 'Banks, Relative Performance, and Sequential Contagion', with Sudipto Bhattacharya and Pojanart Sunirand, Economic Theory, 32, 2007, 381-98
PART III: APPLICATIONS
8. 'A Model to Analysis Financial Fragility: Applications', with Pojanart Sunirand, Journal of Financial Stability, 1, 2004, 1-30
9. 'A Risk Assessment Model For Banks', with Pojanart Sunirand, Annals of Finance, 2, 2006, 1-21
10. 'A Time Series Analysis of Financial Fragility in the UK Banking System', with Pojanart Sunirand, Annals of Finance, 2, 2006, 1-21
11. 'An Equilibrium Approach to Financial Stability Analysis: The Colombian Case', Agustin Saade, Daniel Osorio and Dairo Estrada, Annals of Finance, 3, 2007, 75-105
12. 'A Model of Financial Fragility', Kevin James, CCBS, 2006, 1-8
PART IV: LIQUIDITY AND COLLATERAL
13. 'Modeling a Housing and Mortgage Crisis', with Alexandros P. Vardoulakis, Financial Stability, Monetary Policy, and Central Banking, 2010, 215-53
14. State Prices, Liquidity, and Default', with Raphael A. Espinoza, Economic Theory, 39, 2009, 177-94
PART V: CONCLUSION
15. Conclusion
Charles A.E. Goodhart and Dimitrios P. Tsomocos
1. Introduction
Charles A.E. Goodhart and Dimitrios P. Tsomocos
PART I: OVERVIEW
2. 'Analysis of Financial Stability', Charles A.E. Goodhart and Dimitrios P. Tsomocos in Pierre L. Siklos, Martin T. Bohl and Mark E. Bohar (eds), Challenges in Central Banking: The Current Institutional Environment and Forces Affecting Monetary Policy, Cambridge, UK: Cambridge University Press, 2010, pp.121-45
3. 'Evaluation of Macroeconomic Models for Financial Stability Analysis', Gunnar Bardsen, Kjersti-Gro Lindquist and Dimitrios P. Tsomocos, Journal of World Economic Review, 3 (1), January-June 2008, 7-32
PART II: THEORY
4. 'Equilibrium Analysis, Banking and Financial Instability', Dimitrios P. Tsomocos, Journal of Mathematical Economics, 39, 2003, 619-55
5. 'A Model to Analyse Financial Fragility', with Pojanart Sunirand, Economic Theory, 27, 2006, 107-42
6. 'On Modelling Endogenous Default', Dimitrios P. Tsomocos and Lea Zicchino, OFRC-fe, 2005, 1-19
7. 'Banks, Relative Performance, and Sequential Contagion', with Sudipto Bhattacharya and Pojanart Sunirand, Economic Theory, 32, 2007, 381-98
PART III: APPLICATIONS
8. 'A Model to Analysis Financial Fragility: Applications', with Pojanart Sunirand, Journal of Financial Stability, 1, 2004, 1-30
9. 'A Risk Assessment Model For Banks', with Pojanart Sunirand, Annals of Finance, 2, 2006, 1-21
10. 'A Time Series Analysis of Financial Fragility in the UK Banking System', with Pojanart Sunirand, Annals of Finance, 2, 2006, 1-21
11. 'An Equilibrium Approach to Financial Stability Analysis: The Colombian Case', Agustin Saade, Daniel Osorio and Dairo Estrada, Annals of Finance, 3, 2007, 75-105
12. 'A Model of Financial Fragility', Kevin James, CCBS, 2006, 1-8
PART IV: LIQUIDITY AND COLLATERAL
13. 'Modeling a Housing and Mortgage Crisis', with Alexandros P. Vardoulakis, Financial Stability, Monetary Policy, and Central Banking, 2010, 215-53
14. State Prices, Liquidity, and Default', with Raphael A. Espinoza, Economic Theory, 39, 2009, 177-94
PART V: CONCLUSION
15. Conclusion
Charles A.E. Goodhart and Dimitrios P. Tsomocos