scholarly journals Capital Adequacy and Liquidity of Global Financial Institutions: A Study of Reforms after the Great Recession

2019 ◽  
Vol 5 (4) ◽  
pp. p419
Author(s):  
Mehdi Monadjemi ◽  
John Lodewijks
Keyword(s):  
Financial Institutions ◽  
Great Recession ◽  
Federal Reserve ◽  
Financial Crises ◽  
Central Banks ◽  
Capital Adequacy ◽  
Federal Reserve Bank ◽  
The Great Recession ◽  
The Great Depression ◽  
Reserve Bank

The global financial crises of 2007-2009 was followed by the Great Recession which was the worst since the Great Depression of 1930s. The crises left significant adverse effects on global growth and employment. Policymakers of affected countries responded differently to the outcomes of these crises. The central banks, including US Federal Reserve Bank and Bank of England, provided ample liquidity for the financial institutions and lowered the interest rate to near zero. The policymakers and regulators realized that capital inadequacy and insufficient liquidity of financial institutions were the main problems preventing the financial firms to protect themselves against major financial crises. In addition, lack of guidelines for compensations encourages managers to take the extra risks. The US Federal Reserve Bank took the initiative, in cooperation with international central banks to introduce rules and regulations to safeguard the financial systems against another major crisis. It is not guaranteed that another episode of financial instability will not happen again. However, with existing regulations on financial institutions in force, the severity of the crises on the whole global financial system may possibly become weaker. This is a conjecture we explore here.

scholarly journals Hall of Mirrors: The Great Depression, the Great Recession, and the Uses—and Misuses—of History

2015 ◽  
Vol 89 (3) ◽  
pp. 557-569 ◽  
Author(s):  
Per H. Hansen
Keyword(s):  
United States ◽  
Great Depression ◽  
Great Recession ◽  
Financial Crises ◽  
The United States ◽  
Comparative Approach ◽  
The Great Recession ◽  
The Great Depression ◽  
Successful Search ◽  
Similarities And Differences

Barry Eichengreen's new bookHall of Mirrorsis a detailed, excellent, and somewhat pessimistic comparison of the two most serious financial crises ever—their causes, development, and consequences. Readers well versed in the comprehensive literature on the Great Depression and the Great Recession in the United States and Europe will not find much information inHall of Mirrorsthat is completely new, but most others will. Whatisnew is the comparative approach: the detailed and analytically successful search for similarities and differences between the Great Depression and the Great Recession.

scholarly journals Granger Predictability of Oil Prices After the Great Recession

2019 ◽  
Vol 19 (237) ◽  
Author(s):  
Szilard Benk ◽  
Max Gillman
Keyword(s):  
Great Recession ◽  
Strong Evidence ◽  
Federal Reserve ◽  
Oil Prices ◽  
Central Banks ◽  
Monetary Aggregates ◽  
Shock Period ◽  
The Great Recession ◽  
Oil Shock

Real oil prices surged from 2009 through 2014, comparable to the 1970’s oil shock period. Standard explanations based on monopoly markup fall short since inflation remained low after 2009. This paper contributes strong evidence of Granger (1969) predictability of nominal factors to oil prices, using one adjustment to monetary aggregates. This adjustment is the subtraction from the monetary aggregates of the 2008-2009 Federal Reserve borrowing of reserves from other Central Banks (Swaps), made after US reserves turned negative. This adjustment is key in that Granger predictability from standard monetary aggregates is found only with the Swaps subtracted.

The Politics of Monetary Policy: A Critical Review

1994 ◽  
Vol 14 (1) ◽  
pp. 57-85 ◽  
Author(s):  
John T. Woolley
Keyword(s):  
United States ◽  
Monetary Policy ◽  
Central Bank ◽  
Federal Reserve ◽  
Critical Review ◽  
The United States ◽  
Central Banks ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Banking Institution

ABSTRACTThe Federal Reserve Bank of the United States is a pre-eminent banking institution, and an institution that has been subject to scrutiny from a wide variety of scholarly perspectives. The object of this article is to review prominent works dealing with the politics of the Federal Reserve, particularly its relations with other institutions and their effects on monetary policy. The review shows that the formal legal independence of a central bank such as the Fed does not mark the end of monetary politics, and its record suggests a greater measure of modesty and caution on the part of enthusiasts for independent central banks.

scholarly journals The banking and other economic factors of selected U.S. historical events: from the establishment of the Federal Reserve Banking System to the Great Recession

2017 ◽  
Vol 12 (1) ◽  
pp. 14-26
Author(s):  
Paul Gentle
Keyword(s):  
United States ◽  
Great Depression ◽  
Financial Institutions ◽  
Great Recession ◽  
Federal Reserve ◽  
Banking System ◽  
The United States ◽  
The Great Recession ◽  
Regulatory Policies ◽  
Bank System

Knowledge in the economic and banking history of the United States, of the last one hundred years or thereabouts, is necessary in any discussions of even current economic and political policies. This article looks at major economic events in the last century, with some attention also given to surrounding political forces of these events. In 1933, President Franklin Roosevelt, with strong bipartisan support in Congress, was able to pass the Glass-Stegall Act, after taking office in the Great Depression. Politicians in the United States during the approximately twenty-five years prior to the bursting of the housing bubble in 2007 have both used legislation to remove regulations and also made sure that inadequate government personnel were available to audit financial institutions. An important part of confidence is a faith in government regulatory agencies that monitor financial institutions. Lax monetary and regulatory policies can create a real estate bubble. This happened in the most recent economic disaster, the Great Recession. Sometimes the Federal Reserve has pursued reasonable monetary policy and other times inappropriate decreases or increases in the money supply have created havoc in the national economy. Keywords: banking, Federal Reserve Bank System, financial crisis, Great Depression, Great Recession, Taylor rule for central banks. JEL Classification: G21, E5, G01, N11, N12

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