Professor Sweder van Wijnbergen (University of Amsterdam) has given the Tinbergen Institute Finance Lectures 2009. Sweder van Wijnbergen made important contributions to the academic and policy debates on speculative attacks, currency crises, and robustness of the financial system. He is a welcome speaker at many conferences and workshops on the current financial crisis and its possible solutions.
In the Tinbergen Institute Finance Lectures 2009 on Financial Crises, we analysed how a relatively limited housing market problem in the US could trigger a global financial crisis. Are structural fragilities in the financial system to blame or inappropriate policy responses or both? Then taking the current credit crisis as starting point, we discussed the general relation between financial crises, innovation and growth, explore the nature of financial crises and the link between financial and Balance of Payment crises (“Twin crises”). Finally we used the theoretical frameworks discussed to assess appropriate policy response. We payed specific attention to models of bank intervention, the macroeconomic consequences of bank regulation based on capital requirements and reform of the international financial system.
1. Introduction and overview
Brunnermeier, M. (2008), Deciphering the Liquidity and Credit Crunch 2007-2008, forthcoming, Journal of Economic Perspectives
Adrian, Tobias, and Hyun Shin (2008), Financial Intermediary Leverage and Value at Risk, Federal Reserve Bank Staff Reports 338
Diamond and Rajan (2009), The Credit Crisis: Conjectures about Causes and Remedies, NBER WP nr 14739
Reinhart, C., K. Rogoff (2008), Is the 2007 US Subprime Crisis so Different?, NBER WP 13761