Financial Innovation, Macroeconomic Stability and Systemic Crises  

Oleh:

Gai, Prasanna ; Kapadia, Sujit ; Millard, Stephen ; Perez, Ander

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 118 no. 527 (Mar. 2008), page 401.
Topik: Financial Innovation; Macroeconomic Stability; Systemic Crises
Fulltext: 401.pdf (397.48KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.27 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

We present a general equilibrium model of intermediation designed to capture some of the key features of the modern financial system. The model incorporates financial constraints and state-contingent contracts, and contains a clearly defined pecuniary externality associated with asset fire sales during periods of stress. If a sufficiently severe shock occurs during a credit expansion, this externality is capable of generating a systemic financial crisis that may be self-fulfilling. Our model suggests that financial innovation and greater macroeconomic stability may have made financial crises in developed countries less likely than in the past but potentially more severe.

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