Haircuts

14 Pages Posted: 12 Jul 2021 Last revised: 11 Jul 2021

See all articles by Gary B. Gorton

Gary B. Gorton

Yale School of Management; National Bureau of Economic Research (NBER); Yale University - Yale Program on Financial Stability

Andrew Metrick

affiliation not provided to SSRN

Multiple version iconThere are 3 versions of this paper

Date Written: 2010

Abstract

?When confidence is lost, liquidity dries up.? The authors investigate the meaning of ?confidence? and ?liquidity? in the context of the recent financial crisis, which they maintain is a manifestation of an age-old problem with private money creation: banking panics. The authors explain this problem and provide some evidence with respect to the recent crisis.

Keywords: Financial crises, Bank liquidity

Suggested Citation

Gorton, Gary B. and Metrick, Andrew, Haircuts (2010). Available at SSRN: https://ssrn.com/abstract=3884266

Gary B. Gorton (Contact Author)

Yale School of Management ( email )

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HOME PAGE: http://mba.yale.edu/faculty/profiles/gorton.shtml

National Bureau of Economic Research (NBER)

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Yale University - Yale Program on Financial Stability

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United States

Andrew Metrick

affiliation not provided to SSRN

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