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Where has all the Money Gone?

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  • Kevin Davis

Abstract

This paper explains how modern developments in lending and liquidity management using short‐term secured lending contributed to the process of financial sector expansion prior to the financial crisis and its subsequent unwinding. It focuses upon the role of the non‐regulated financial sector, and aims to assist readers to understand the answer to the commonly asked question: where has all the money gone? It draws some lessons and policy implications and identifies a number of regulatory issues emerging as the subject for debate.

Suggested Citation

  • Kevin Davis, 2009. "Where has all the Money Gone?," Economic Papers, The Economic Society of Australia, vol. 28(3), pages 217-225, September.
    • Handle: RePEc:bla:econpa:v:28:y:2009:i:3:p:217-225
    DOI: 10.1111/j.1759-3441.2009.00028.x
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    References listed on IDEAS

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    1. Adrian, Tobias & Shin, Hyun Song, 2010. "Liquidity and leverage," Journal of Financial Intermediation, Elsevier, vol. 19(3), pages 418-437, July.
    2. Adrian Blundell-Wignall, 2007. "An Overview of Hedge Funds and Structured Products: Issues in Leverage and Risk," Financial Market Trends, OECD Publishing, vol. 2007(1), pages 37-57.
    3. Chris Ryan & Chris Thompson, 2007. "Risk and the Transformation of the Australian Financial System," RBA Annual Conference Volume (Discontinued), in: Christopher Kent & Jeremy Lawson (ed.),The Structure and Resilience of the Financial System, Reserve Bank of Australia.
    4. Markus K. Brunnermeier, 2009. "Deciphering the Liquidity and Credit Crunch 2007-2008," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 77-100, Winter.
    5. Reinhart, Carmen M. & Rogoff, Kenneth S., 2013. "Banking crises: An equal opportunity menace," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4557-4573.
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