Crisis Financiera

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Report Information from ProQuest
01 October 2011 17:41

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Documento 1 de 1

The Current Financial Crisis: Causes and Policy Issues
Blundell-Wignall, Adrian; Atkinson, Paul; Lee, SeHoon. OECD Journal. Financial Market Trends95 (Dec 2008): 11-31.

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Resumen
This article discusses some ideas and issues that are part of ongoing reflection at the OECD. They were first raised in a major research article for the Reserve Bankof Australia conference in July 2008, and benefited from policy discussion in and around that conference. One fundamental cause of the crisis was a change in the business model of banking, mixing credit with equity culture. When this model was combined with complex interactions from incentives emanating from macro policies, changes in regulations, taxation, and corporate governance, the currentcrisis became the inevitable result. The paper points to the need for far-reaching reform for a more sustainable situation in the future. [PUBLICATION ABSTRACT]

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Texto completo
Headnote This article discusses some ideas and issues that are part of ongoing reflection at the OECD. They were first raised in a major researcharticle for the Reserve Bank of Australia conference in July 2008, and benefited from policy discussion in and around that conference. One fundamental cause of the crisis was a change in the business model of banking, mixing credit with equity culture. When this model was combined with complex interactions from incentives emanating from macro policies, changes in regulations, taxation, and corporategovernance, the current crisis became the inevitable result. The paper points to the need for far-reaching reform for a more sustainable situation in the future. I. Origins and causes of the crisis1 Current financial crisis ca used by global macro liquidity policies and by a poor regula tory framework At the recent Reserve Bank of Australia conference on the current financial turmoil the paper byAdrian Blundell-Wignall and Paul Atkinson explained the current financial crisis as being caused at two levels: by global macro policies affecting liquidity and by a very poor regulatory framework that, far from acting as a second line of defence, actually contributed to the crisis in important ways.2 The policies affecting liquidity created a situation like a dam overfilled with flooding water.Interest rates at one per cent in the United States and zero per cent in Japan, China's fixed exchange rate, the accumulation of reserves in Sovereign Wealth

Funds, all helped to fill the liquidity reservoir to overflowing. The overflow got the asset bubbles and excess leverage under way. But the faults in the dam - namely the regulatory system started from about 2004 to direct the water moreforcefully into some very specific areas: mortgage securitisation and off-balance sheet activity. The pressure became so great that that the dam finally broke, and the damage has already been enormous. This paper summarises the main findings of the Reserve Bank paper and extends it through focusing on the policy discussion and comments received. 2004 is critical in thinking about causality The crisisfrom the distortions and incentives created by past policy actions When economists talk about causality they usually have some notion of exogeneity in mind; that relatively independent factors changed and caused endogenous things to happen - in this case the biggest financial crisis since the Great Depression. The crisis itself was not independent, but originated from the distortions and...