{"title":"Governing EU Banks after the Global Financial Crisis: From Regulation to Governance","authors":"Agnieszka Smoleńska","doi":"10.5040/9780755626656.ch-011","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-011","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"114 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122616536","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Danger of Raising and then Dashing Expectations: The Lesson from Lehman?","authors":"T. Huertas","doi":"10.5040/9780755626656.ch-010","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-010","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115131163","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"On Volatility, Economic Slow-Motion and Populism: The Global Financial Crisis and Beyond","authors":"Gerald Braunberger","doi":"10.5040/9780755626656.ch-003","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-003","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123038424","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial Crisis Management: Unanswered Key Questions","authors":"Patrick Honohan","doi":"10.5040/9780755626656.ch-007","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-007","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124902743","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Introduction: The Legacy of the Global Financial Crisis","authors":"Y. Cassis, Jean-Jacques van Helten","doi":"10.5040/9780755626656.0007","DOIUrl":"https://doi.org/10.5040/9780755626656.0007","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130982379","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Financial Crisis, National Policy Responses and the Rise of Conservative Nationalism","authors":"Dorothee Bohle","doi":"10.5040/9780755626656.ch-006","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-006","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"113 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126696695","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Lessons from the Great Financial Crisis in Perspective","authors":"R. Marimon","doi":"10.5040/9780755626656.ch-004","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-004","url":null,"abstract":"In fact, one of the brightest, Nobel Laureate Robert Lucas had said in his Presidential Address of the American Economic Association: “My thesis in this lecture is that macroeconomics in this original sense has succeeded: Its central problem of depression prevention has been solved,” (Lucas 2013). He was not alone, regarding asset bubbles, ‘benign neglect’ was the general attitude, among academic macroeconomists, while central banks were simply focusing on inflation, based on the ‘divine coincidence’ argument, according to which, to maintain a stable inflation would suffice to keep economic activity close to its potential (Blanchard et al. 2014).","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123975972","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Legacy of the Global Financial Crisis: The View from Greece","authors":"G. Papaconstantinou","doi":"10.5040/9780755626656.ch-009","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-009","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128376363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Wasted Legacy of a Crisis","authors":"P. Berès","doi":"10.5040/9780755626656.ch-005","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-005","url":null,"abstract":"","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"86 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126292349","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Moral Hazard and Equity Finance: Why Policy has been Sub-optimal since the Global Financial Crisis","authors":"C. Goodhart","doi":"10.5040/9780755626656.ch-001","DOIUrl":"https://doi.org/10.5040/9780755626656.ch-001","url":null,"abstract":"Whereas this Chapter was written before the coronavirus pandemic struck, I see no reason to amend or alter any of its contents and arguments. Its thesis is that macroeconomic policy remained sub-optimal in the years between the Great Financial Crisis (GFC) and the onset of Covid-19. The main reason why this has been so is that there has been a generalised failure to appreciate the moral hazard that was introduced into the modern capitalist economy by the legal institution of limited liability for all equity holders. The incentive structure induced by limited liability has led corporate managers, notably bank managers, to seek excessive risk and leverage in the pursuit of return on equity (RoE), egged on by shareholders. There has been a tendency to accuse bankers of moral failings; whereas there is little evidence that bankers are significantly different from other humans, except, perhaps, in having better numerical and computational skills. An associated failing has been to anthropomorphise banks, and treat them as if they were human beings, whereas nonsentient institutions banks have no emotions and cannot make decisions; only bankers can do that. While the policy measures of requiring banks, especially larger banks (SIFIs), to hold significantly more equity capital, has been correct and helpful, the failure to deal with the underlying moral hazard has meant that bankers still have a strong incentive, in pursuit of RoE, to avoid or evade, and manipulate, the regulations, rather than internalise the optimal level of social risk taking. Section II gives a fuller analysis of the implications of the moral hazard inherent in limited liability for all equity shareholders.","PeriodicalId":324997,"journal":{"name":"The Legacy of the Global Financial Crisis","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129561206","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}