Financial Crises and the Challenges for Future Research

5 Pages Posted: 12 May 2010

See all articles by Anjan V. Thakor

Anjan V. Thakor

Washington University in St. Louis - John M. Olin Business School; Financial Theory Group; European Corporate Governance Institute (ECGI); Massachusetts Institute of Technology (MIT) - Laboratory for Financial Engineering

Date Written: April 1, 2010

Abstract

The main causes of the crisis could be ascribed to the global liquidity equilibrium, political interference in the credit market, bank credit standards, securitization and credit ratings. In order to better understand the crisis development and effects, the infectious leverage and the role of the financial innovation had to be considered.

When house prices grow and financial intermediaries work in a competitive environment, a financial crisis will be more probable and so a better supervisory approach is necessary.

Keywords: Financial crisis, Infectious leverage, Financial innovation

JEL Classification: G01, G21, G28

Suggested Citation

Thakor, Anjan V., Financial Crises and the Challenges for Future Research (April 1, 2010). Bancaria Special Issue No. 03-2010, Available at SSRN: https://ssrn.com/abstract=1603783

Anjan V. Thakor (Contact Author)

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

Financial Theory Group ( email )

United States

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Massachusetts Institute of Technology (MIT) - Laboratory for Financial Engineering ( email )

100 Main Street, E62-618
Cambridge, MA 02142
United States

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