IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789814322096_0006.html
   My bibliography  Save this book chapter

The Causes of the Financial Crisis and the Impact of Raising Capital Requirements

In: The International Financial Crisis Have the Rules of Finance Changed?

Author

Listed:
  • Martin Neil Baily

    (Brookings Institution, USA)

  • Douglas J. Elliott

    (Brookings Institution, USA)

Abstract

The following sections are included:IntroductionThe Causes of the CrisisHome prices were expected to keep risingLong and short interest rates were lowHousing demand built on itself to create a bubble in pricesShifting types of lending and the erosion of standardsEconomic incentives in the housing and mortgage origination marketsSecuritization and the funding of the housing boomMore securitization and more leverage — CDOsStructured investment vehicles and off-balance-sheet entitiesLeverage and the push to short-term borrowingCredit insurance and the growth in credit default swapsThe failure of company risk management practicesRegulation and supervisionWhat Is the Impact of Increasing Capital Requirements?ConclusionsReferences

Suggested Citation

  • Martin Neil Baily & Douglas J. Elliott, 2011. "The Causes of the Financial Crisis and the Impact of Raising Capital Requirements," World Scientific Book Chapters, in: Asli Demirgüç-Kunt & Douglas D Evanoff & George G Kaufman (ed.), The International Financial Crisis Have the Rules of Finance Changed?, chapter 6, pages 59-71, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814322096_0006
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789814322096_0006
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789814322096_0006
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roy Trivedi, Smita, 2011. "The growing dichotomy between real and financial sectors," MPRA Paper 41421, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789814322096_0006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.