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Financial Crises
This important volume presents key contributions to the study of financial crises from many different areas of economics. The book offers an economic history of financial crises, empirical studies of crises in the modern era, and classic works on the theory of banking crises. It also covers specialized topics, with sections on currency crises and financial contagion. Undergraduate students of money, banking, macroeconomics and financial crises alike will find this collection to be an invaluable overview of a critical area of study.
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Critical Acclaim
Contributors
Contents
More Information
This important volume presents key contributions to the study of financial crises from many different areas of economics. The book offers an economic history of financial crises, empirical studies of crises in the modern era, and classic works on the theory of banking crises. It also covers specialized topics, with sections on currency crises and financial contagion. Undergraduate students of money, banking, macroeconomics and financial crises alike will find this collection to be an invaluable overview of a critical area of study.
Critical Acclaim
‘. . . an impressive collection of the seminal contributions to the academic literature on financial crises of the past three decades. . . I recommend this book to scholars, who will find here many of the intellectual ancestors of future papers. For policymakers and market participants the book should be required reading, as it will provide them with an overview of what the mainstream academic literature currently has to say about financial crises. Taking note of this literature will undoubtedly lead to better informed decision-making.’
– Jan Marc Berk, SUERF
‘Franklin Allen and Douglas Gale, who have made truly decisive contributions to our understanding of runs, contagion and financial crises, were the ideal scholars to edit this volume. Financial Crises is a well-balanced collection of important articles on the topic, with theoretical, empirical and historical perspectives; a must-read for students, researchers and practitioners interested in banking and currency crises.’
– Jean Tirole, University of Sciences, Toulouse, France
– Jan Marc Berk, SUERF
‘Franklin Allen and Douglas Gale, who have made truly decisive contributions to our understanding of runs, contagion and financial crises, were the ideal scholars to edit this volume. Financial Crises is a well-balanced collection of important articles on the topic, with theoretical, empirical and historical perspectives; a must-read for students, researchers and practitioners interested in banking and currency crises.’
– Jean Tirole, University of Sciences, Toulouse, France
Contributors
22 articles, dating from 1979 to 2006
Contributors include: C. Calomiris, J. Bryant, D. Diamond, P. Dybvig, C. Kahn, G. Kaminsky, P. Krugman, S. Morris, C. Reinhart, H.S. Shin
Contributors include: C. Calomiris, J. Bryant, D. Diamond, P. Dybvig, C. Kahn, G. Kaminsky, P. Krugman, S. Morris, C. Reinhart, H.S. Shin
Contents
Contents:
Acknowledgements
Introduction Franklin Allen and Douglas Gale
PART I CRISES IN HISTORICAL PERSPECTIVE
1. Michael Bordo, Barry Eichengreen, Daniela Klingebiel and Maria Soledad Martinez-Peria (2001), ‘Is the Crisis Problem Growing More Severe?’
2. Gary Gorton (1988), ‘Banking Panics and Business Cycles’
3. Charles W. Calomiris and Joseph R. Mason (2003), ‘Fundamentals, Panics, and Bank Distress During the Depression’
PART II EMPIRICAL STUDIES OF CRISES
4. John H. Boyd, Sungkyu Kwak and Bruce Smith (2005), ‘The Real Output Losses Associated with Modern Banking Crises’
5. Graciela L. Kaminsky and Carmen M. Reinhart (1999), ‘The Twin Crises: The Causes of Banking and Balance-of-Payments Problems’
6. Graciela L. Kaminsky, Carmen M. Reinhart and Carlos A. Végh (2003), ‘The Unholy Trinity of Financial Contagion’
PART III BANKING CRISES
7. John Bryant (1980), ‘A Model of Reserves, Bank Runs, and Deposit Insurance’
8. Douglas W. Diamond and Philip H. Dybvig (1983), ‘Bank Runs, Deposit Insurance, and Liquidity’
9. Charles W. Calomiris and Charles M. Kahn ([1991] 2001), ‘The Role of Demandable Debt Structuring Optimal Banking Arrangements’
10. Franklin Allen and Douglas Gale (1998), ‘Optimal Financial Crises’
11. Franklin Allen and Douglas Gale (2004), ‘Financial Intermediaries and Markets’
12. Jean-Charles Rochet and Xavier Vives (2004), ‘Coordination Failures and the Lender of Last Resort: Was Bagehot Right after All?’
13. Itay Goldstein and Ady Pauzner (2005), ‘Demand-Deposit Contracts and the Probability of Bank Runs’
14. Franklin Allen and Douglas Gale (2000), ‘Bubbles and Crises’
15. Douglas W. Diamond and Raghuram G. Rajan (2006), ‘Money in a Theory of Banking’
PART IV CURRENCY CRISES
16. Paul Krugman (1979), ‘A Model of Balance-of-Payments Crises’
17. Robert P. Flood and Peter M. Garber (1984), ‘Gold Monetization and Gold Discipline’
18. Maurice Obstfeld (1996), ‘Models of Currency Crises with Self-Fulfilling Features’
19. Stephen Morris and Hyun Song Shin (1998), ‘Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks’
20. Roberto Chang and Andres Velasco (2001), ‘A Model of Financial Crises in Emerging Markets’
PART V FINANCIAL CONTAGION
21. Franklin Allen and Douglas Gale (2000), ‘Financial Contagion’
22. Laura E. Kodres and Matthew Pritsker (2002), ‘A Rational Expectations Model of Financial Contagion’
Name Index
Acknowledgements
Introduction Franklin Allen and Douglas Gale
PART I CRISES IN HISTORICAL PERSPECTIVE
1. Michael Bordo, Barry Eichengreen, Daniela Klingebiel and Maria Soledad Martinez-Peria (2001), ‘Is the Crisis Problem Growing More Severe?’
2. Gary Gorton (1988), ‘Banking Panics and Business Cycles’
3. Charles W. Calomiris and Joseph R. Mason (2003), ‘Fundamentals, Panics, and Bank Distress During the Depression’
PART II EMPIRICAL STUDIES OF CRISES
4. John H. Boyd, Sungkyu Kwak and Bruce Smith (2005), ‘The Real Output Losses Associated with Modern Banking Crises’
5. Graciela L. Kaminsky and Carmen M. Reinhart (1999), ‘The Twin Crises: The Causes of Banking and Balance-of-Payments Problems’
6. Graciela L. Kaminsky, Carmen M. Reinhart and Carlos A. Végh (2003), ‘The Unholy Trinity of Financial Contagion’
PART III BANKING CRISES
7. John Bryant (1980), ‘A Model of Reserves, Bank Runs, and Deposit Insurance’
8. Douglas W. Diamond and Philip H. Dybvig (1983), ‘Bank Runs, Deposit Insurance, and Liquidity’
9. Charles W. Calomiris and Charles M. Kahn ([1991] 2001), ‘The Role of Demandable Debt Structuring Optimal Banking Arrangements’
10. Franklin Allen and Douglas Gale (1998), ‘Optimal Financial Crises’
11. Franklin Allen and Douglas Gale (2004), ‘Financial Intermediaries and Markets’
12. Jean-Charles Rochet and Xavier Vives (2004), ‘Coordination Failures and the Lender of Last Resort: Was Bagehot Right after All?’
13. Itay Goldstein and Ady Pauzner (2005), ‘Demand-Deposit Contracts and the Probability of Bank Runs’
14. Franklin Allen and Douglas Gale (2000), ‘Bubbles and Crises’
15. Douglas W. Diamond and Raghuram G. Rajan (2006), ‘Money in a Theory of Banking’
PART IV CURRENCY CRISES
16. Paul Krugman (1979), ‘A Model of Balance-of-Payments Crises’
17. Robert P. Flood and Peter M. Garber (1984), ‘Gold Monetization and Gold Discipline’
18. Maurice Obstfeld (1996), ‘Models of Currency Crises with Self-Fulfilling Features’
19. Stephen Morris and Hyun Song Shin (1998), ‘Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks’
20. Roberto Chang and Andres Velasco (2001), ‘A Model of Financial Crises in Emerging Markets’
PART V FINANCIAL CONTAGION
21. Franklin Allen and Douglas Gale (2000), ‘Financial Contagion’
22. Laura E. Kodres and Matthew Pritsker (2002), ‘A Rational Expectations Model of Financial Contagion’
Name Index
