The Financial Repression Index: U.S Banking System Since 1984

11 Pages Posted: 17 Apr 2018 Last revised: 11 Jun 2019

See all articles by Richard Christopher Whalen

Richard Christopher Whalen

Economic Advisory Committee of FINRA; Indiana State University - Networks Financial Institute; Association of Private Enterprise Education (APEE); National Association of Business Economists (NABE)

Date Written: June 8, 2019

Abstract

This paper reviews the research literature concerning financial repression. The paper then presents an empirical measure for financial repression in the US banking system entitled “The Financial Repression Index,” drawing upon public data going back to the early 1980s The paper draws some preliminary conclusions about the economic impact of financial repression in the US based upon observations of the banking system and related data. Overall this paper concludes that bank depositors and investors have been the victims of significant financial repression since the 1990s and particularly since the 2008 financial crisis as measured by the dramatic shift in net interest income in favor of banks. The paper also concludes that while banks themselves have received a significant subsidy due to financial repression, banks have also suffered decreased asset returns as a result of the low interest rates policies and open market operations of the Federal Open Market Committee.

Keywords: Financial Repression, Reinhart, McKinnon, Rogoff, Volcker, Banking, Net Interest Margin, Interest Income

JEL Classification: G00, G01, G12, G18, N00, N20, N2, N4, P1

Suggested Citation

Whalen, Richard Christopher, The Financial Repression Index: U.S Banking System Since 1984 (June 8, 2019). Available at SSRN: https://ssrn.com/abstract=3155370 or http://dx.doi.org/10.2139/ssrn.3155370

Richard Christopher Whalen (Contact Author)

Economic Advisory Committee of FINRA ( email )

1735 K Street NW
Washington, DC 20006
United States

HOME PAGE: http://tinyurl.com/2bne6p

Indiana State University - Networks Financial Institute ( email )

Terre Haute, IN 47809
United States

HOME PAGE: http://tinyurl.com/4ckcoxo

Association of Private Enterprise Education (APEE) ( email )

313 Fletcher Hall, Dept. 6106
615 McCallie Avenue
Chattanooga, TN 37403-2598
United States

HOME PAGE: http://https://www.apee.org/

National Association of Business Economists (NABE) ( email )

1920 L St. NW, Suite 300
Washington, DC 20036
United States

HOME PAGE: http://www.nabe.com

Register to save articles to
your library

Register

Paper statistics

Downloads
164
Abstract Views
1,024
rank
184,245
PlumX Metrics