Events

Tinbergen Institute Finance Lectures 2009

Sweder van Wijnbergen: Financial Crises

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.

Date: May 11,12 and 15, 2009

Schedule

Monday, May 11
Venue: University of Amsterdam, Roetersstraat 15, Amsterdam, Room A1.08

09:00-09:30Registration and coffee
09:30-12:00Lecture
12:00-13:30Lunch
13:30-16:00Lecture
Tuesday, May 12
Venue: Tinbergen Institute Amsterdam, Roetersstraat 31, Amsterdam, Room 4.10
09:30-10:00Coffee
10:00-12:30Lecture
12:30-13:30Lunch
13:30-16:00Lecture
16:00Drinks
Friday, May 15
Venue: Tinbergen Institute Amsterdam, Roetersstraat 31, Amsterdam, Room 4.10
09:30-10:00Coffee
10:00-12:30Lecture
12:30-13:30Lunch
13:30-16:00Lecture
16:00Drinks

Literature


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

2. Securitization and System Fragility
Coval, J., J. Jurek, E. Stafford (2009), The Economics of Structured Finance, HBS WP 09- 060
Gorton, G. (2008), The Panic of 2007, NBER WP 14358
Keys, B., T. Mukherjee, A.Seru, V. Vig, (2008), Did Securitization Lead to Lax Screening?, mimeo, University of Michigan
Shin, H. (2009), Securitization and Financial Stability, Economic Journal, March 2009

3. Rating Agencies
Bolton, P., X. Freixas, J. Shapiro (2009), The Credit Ratings Game, NBER WP 14712
Enmelech, E., J. Dlugosz, The Alchemy of CDO Credit Ratings, mimeo, Harvard University
Farhi, E., J. Lerner, J. Tirole (2008), Fear of Rejection? Tiered Certification and Transparency, NBER WP 14457

4. Banking Crises
Diamond, D. and R. Rajan (2005), Liquidity Shortages and Banking Crises, Journal of Finance.
Ivashina, V., D. Scharfstein (2008), Bank Lending During the Financial Crisis of 2008, HBS WP
Diamond, D., R. Rajan (2009), Fear of Firesales and the Credit Freeze, NBER WP 14925

5. Capital Requirements
Bec, F., C. Gollier (2008), “Value at Risk across horizons and the Financial Cycle: Are Solvency Requirement Rules Procyclical?”, mimeo, University of Toulouse
Morrison, A., L. White (2005), Crises and Capital Requirements in Banking, American Economic Review
Kashyap, A., R. Rajan, J. Stein (2008), Rethinking Capital Regulation, Federal Reserve Bank of Kansas Jackson Hole conference 2008.
Walque, G. de, O. Pierrard, A. Rouabah (2009), Financial Instability, Supervision and Liquidity Injections: a Dynamic General Equilibrium Approach, mimeo, National Bank of Belgium

6. Bank Intervention
Philippon, T., Ph. Schnabl (2009), Efficient Recapitalization, NBER WP 14929
Wijnbergen, S. van (1998), “Bank Restructuring and Enterprise Reform”, EBRD WP
Wijnbergen, S. van (1997), “On the Role of Banks in Enterprise Restructuring: the Polish Example”, Journal of Comparative Economics
Claessens, S., Klingebiel and L. Laeven (2004), Resolving Systemic Financial Crises: Policies and Institutions, in Laevens, ed. (2004),”Systemic Crises”, World Bank

7. Crises, Business Cycles and Growth
Ranciere, R., A. Tornell, F. Westerman (2008), Systemic Crises and Growth, Quarterly Journal of Economics
Chang, R., A. Velasco (2001), A Model of Financial Crises in Emerging Markets, Quarterly Journal of Economics
Reinhart, C., K. Rogoff (2008), "Banking Crises: an Equal opportunity Menace”, NBER WP 14587
Reinhart, C., K. Rogoff (2009), The Aftermath of Financial Crises, American Economic Review, papers and proceedings Jan 2009 meeting