The Risk of Economic CrisisMartin Feldstein, National Bureau of Economic Research The stunning collapse of the thrift industry, the major stock slump of 1987, rising corporate debt, wild fluctuations of currency exchange rates, and a rash of defaults on developing country debts have revived fading memories of the Great Depression and fueled fears of an impending economic crisis. Under what conditions are financial markets vulnerable to disruption and what economic consequences ensue when these markets break down? In this accessible and thought-provoking volume, Benjamin M. Friedman investigates the origins of financial crisis in domestic capital markets, Paul Krugman examines the international origins and transmission of financial and economic crises, and Lawrence H. Summers explores the transition from financial crisis to economic collapse. In the introductory essay, Martin Feldstein reviews the major financial problems of the 1980s and discusses lessons to be learned from this experience. The book also contains provocative observations by senior academics and others who have played leading roles in business and government. |
Contents
The Risks of Financial Crises | 19 |
2 E Gerald Corrigan | 44 |
3 Irvine H Sprague | 53 |
4 Norman Strunk | 57 |
5 Joseph A Grundfest | 62 |
Summary of Discussion | 79 |
International Aspects of Financial Crises | 85 |
2 C FredBergsten | 109 |
Macroeconomic Consequences of Financial Crises | 135 |
2 Hyman P Minsky | 158 |
3 Paul A Samuelson | 167 |
4 William Poole | 170 |
5 Paul A Volcker | 174 |
Summary of Discussion | 179 |
Biographies | 183 |
Contributors | 189 |
3 Rudiger Dornbusch | 116 |
4 Jacob A Frenkel | 123 |
5 Charles P Kindleberger | 128 |
Summary of Discussion | 132 |
193 | |
195 | |
Other editions - View all
The Risk of Economic Crisis Martin Feldstein,National Bureau of Economic Research Limited preview - 1991 |
The Risk of Economic Crisis Martin Feldstein,National Bureau of Economic Research No preview available - 1991 |
Common terms and phrases
banking system behavior billion bonds borrowers capital flight cash flow central banks changes collapse corporate cost countries crashette currency crises debt decline default deficit demand deposit insurance depositors Depression dollar earnings economic economists effect equity exchange rate failure FDIC Federal Reserve financial crisis financial disruptions financial institutions financial markets financial system firms foreign foreign exchange market Fred Bergsten Friedman funds hard landing hedge financing important income increase inflation interest rates International Monetary Fund investment investors issue junk bonds Kindleberger Krugman last resort lender of last lender-of-last-resort lending leverage liquidity macroeconomic major market volatility Martin Feldstein monetary policy money supply NBER nonfinancial October panics Paul Krugman payments percent portfolio problem ratio real economy real estate recession reduce regulation result rise risk savings and loan scenario sector selling speculative stability stock market crash stock prices substantial tion trading United