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Anatomy of the Credit Crisis: The role of Faulty Risk Management Systems

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  • Frank Milne

    (Queen's University)

Abstract

The current credit market crisis reflects system-wide problems in the trading and hedging of credit risks. It started in the US mortgage market, but it has spread more generally into other credit markets, where perceived counter-party risks between financial institutions have risen, impairing their operation. This is an international, systemic problem, which has become more serious as time has passed.

Suggested Citation

  • Frank Milne, 2008. "Anatomy of the Credit Crisis: The role of Faulty Risk Management Systems," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 269, July.
    • Handle: RePEc:cdh:commen:269
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    References listed on IDEAS

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    Cited by:

    1. Mark Kamstra & Rpbert J. Shiller, 2008. "The Case for Trills: Giving Canadians and their Pension Funds a Stake in the Wealth of the Nation," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 271, August.
    2. Costa Cabral, Nazare, 2010. "Breve guia temático e bibliográfico sobre o estudo da actual crise financeira e económica [Short thematic guide to the study of current financial and economic crisis]," MPRA Paper 20743, University Library of Munich, Germany.
    3. Frank Milne & David Longworth, 2020. "Preparing for Future Pandemics: Stress Tests and Wargames," Working Paper 1437, Economics Department, Queen's University.
    4. Arthur J. Cockfield, 2008. "Finding Silver Linings in the Storm: An Evaluation of Recent Canada-US Crossborder Developments," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 272, September.
    5. Peter W. Hogg, 2008. "A Question of Parliamentary power: Criminal Law and the Control of Greenhouse Gas Emissions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 114, August.
    6. Peter Sinclair & Guy Spier & Tom Skinner, 2008. "Bonuses, Credit Rating Agencies and the Credit Crunch," Discussion Papers 08-05, Department of Economics, University of Birmingham.
    7. Frank Milne, 2012. "Economic Crises: The Impact On Australia And Canada," Working Paper 1296, Economics Department, Queen's University.
    8. David Card & Martin Dooley & A. Abigail Payne, 2008. "School Choice and the Benefits of Competition: Evidence from Ontario," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 115, October.
    9. Peter Dungan & Jack Mintz & Finn Poschmann & Thomas Wilson, 2008. "Growth Oriented Sales Tax Reform for Ontario: Replacing the Retail Sales Tax with a 7.5 Percent Value-Added Tax," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 273, September.
    10. John Richards, 2008. "Closing the Aboriginal/non-Aboriginal Education Gaps," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 116, October.

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    More about this item

    Keywords

    economic growth and innovation; financial services;

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F3 - International Economics - - International Finance

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