Essays on the Macroeconomic and Financial Causes of the Great Recession PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Essays on the Macroeconomic and Financial Causes of the Great Recession PDF full book. Access full book title Essays on the Macroeconomic and Financial Causes of the Great Recession by Juan Jose Ospina Tejeiro. Download full books in PDF and EPUB format.
Author: Juan Jose Ospina Tejeiro Publisher: ISBN: 9780355079289 Category : Languages : en Pages : 385
Book Description
This dissertation is composed of three essays that study the macroeconomic and financial causes of the Great Recession. The first chapter focuses on understanding some of the business cycle dynamics of different regions in the United States. In particular, I seek to understand what shocks and frictions are the drivers of consumption and employment differences across subnational economies, particularly states. I find that the shocks and frictions that drive the aggregate business cycle are not enough to understand regional business cycle dynamics. In this chapter I develop methodological contributions that can help researchers guide the construction of models whose goal is to understand regional business cycle dynamics and how it relates to aggregate business cycle dynamics. The second chapter focuses on understanding the link between regional and aggregate business cycles. We find that that the shocks that we can identify using cross-sectional variation are insufficient to understand the joint dynamics of prices, wages and employment at business cycle frequencies. In particular, demand shocks identified using cross-region variation are insufficient to explain the persistent decline in aggregate employment. This chapter develops methodological contributions to identify shocks in macroeconomic models and to construct regional indexes for prices and wages. The third chapter is an empirical analysis of the non-agency mortgage backed securities market, which has been at the core of the explanations of the causes of the Great Recession. By carefully studying the cash flows, returns, and how they relate to the credit ratings, we find that contrary to the conventional narrative of the crisis, AAA-rated subprime mortgage backed securities performed remarkably well. This calls into question some key aspects of the explanations that have been given as triggers of the crisis of 2008, and points at the need to better understand the forces behind this event in order to have a more accurate understanding and be able to prescribe appropriate policies.
Author: Juan Jose Ospina Tejeiro Publisher: ISBN: 9780355079289 Category : Languages : en Pages : 385
Book Description
This dissertation is composed of three essays that study the macroeconomic and financial causes of the Great Recession. The first chapter focuses on understanding some of the business cycle dynamics of different regions in the United States. In particular, I seek to understand what shocks and frictions are the drivers of consumption and employment differences across subnational economies, particularly states. I find that the shocks and frictions that drive the aggregate business cycle are not enough to understand regional business cycle dynamics. In this chapter I develop methodological contributions that can help researchers guide the construction of models whose goal is to understand regional business cycle dynamics and how it relates to aggregate business cycle dynamics. The second chapter focuses on understanding the link between regional and aggregate business cycles. We find that that the shocks that we can identify using cross-sectional variation are insufficient to understand the joint dynamics of prices, wages and employment at business cycle frequencies. In particular, demand shocks identified using cross-region variation are insufficient to explain the persistent decline in aggregate employment. This chapter develops methodological contributions to identify shocks in macroeconomic models and to construct regional indexes for prices and wages. The third chapter is an empirical analysis of the non-agency mortgage backed securities market, which has been at the core of the explanations of the causes of the Great Recession. By carefully studying the cash flows, returns, and how they relate to the credit ratings, we find that contrary to the conventional narrative of the crisis, AAA-rated subprime mortgage backed securities performed remarkably well. This calls into question some key aspects of the explanations that have been given as triggers of the crisis of 2008, and points at the need to better understand the forces behind this event in order to have a more accurate understanding and be able to prescribe appropriate policies.
Author: Óscar Dejuán Publisher: Edward Elgar Publishing ISBN: 1849807469 Category : Business & Economics Languages : en Pages : 273
Book Description
The 2008-10 financial crisis and the global recession it created is a complex phenomenon that warrants detailed examination. The various essays in the book utilise several alternative paradigms to provide a plausible explanation and a credible cure. This book provides this important analysis in great detail and from different theoretical perspectives, presenting a clearer understanding of what went wrong and expounding misinterpretations of current theories and practices. Thirteen insightful chapters by eminent scholars investigate the background of the crisis and draw lessons for economic theory and policy. They largely illustrate that the roots of the recession lie in the financial sector which, over the past few decades, has expanded considerably in terms of both size and complexity. They show that financial innovation has decoupled the real and financial sectors - not always to the benefit of economic stability - and argue that financial markets should be regulated more astutely in order to reinforce transparency and accountability. The book concludes that economics as a science should give proper weight to financial variables and integrate them into its models.
Author: William L Pittenger Publisher: Bill Pittenger Real Estate Economics, LLC ISBN: 9780578150390 Category : Languages : en Pages : 456
Book Description
What started as overbuilding in a few American cities turned into the broadest, deepest and most severe economic downturn since the Great Depression of the 1930s. When the subprime lending market imploded in the latter months of 2007, the disastrous effects were felt in housing, then employment, then commercial real estate, then banking, then throughout the broader economy. The Great Recession, as it has come to be known, was unusual. Most recessions are triggered by monetary policy gone awry or by some sort of economic shock which eventually infects the housing sector. Not so this time. The recession began in housing and quickly expanded into other sectors and eventually to the broader economy in both the U.S. and abroad. Author and real estate economist, William "Bill" Pittenger tracked The Great Recession at virtually every step of the way. As he did, he wrote about what he was witnessing personally and through his comprehensive economic research and analysis. He recorded it all contemporaneously. That research is presented in a compilation of 150 contemporaneous essays written between 2007 and 2013. His essays record the prelude to recession in 2007; the depths of the recession in 2008 and 2009 and the agonizingly slow recovery we are still experiencing today - some five years after the recession technically ended.
Author: Anis Chowdhury Publisher: Nova Science Publishers ISBN: 9781536136562 Category : Economic development Languages : en Pages : 0
Book Description
The chapters in this volume were written as commentaries between mid-2008 and early-2016 in the wake of the Great Recession of 2008-2009. The primary topics around which the various essays are compiled are: (a) crisis and response, (b) fiscal policy, (c) monetary and capital account policy, (d) employment, and (e) development. The chapters not only provide a critique of mainstream macroeconomics, but also suggest a way forward. This volume contains an extensive introduction to synthesise the debate on macroeconomic orthodoxy and to assess the attempts at its reconstruction in light of its dismal failure in predicting the crisis and responding to it. As a background, it briefly traces the retreat of post-Great Depression Keynesian macroeconomics (with it, full employment as the primary policy goal) and the rise of new orthodoxy (concerned with a single target, inflation) that came to dominate major international financial institutions, notably the International Monetary Fund and the World Bank. It also highlights contrasting analyses of the global macroeconomic issues by the Bretton Woods Institutions (BWIs) vis-á-vis the United Nations, and their contributions to macroeconomics-development discourse. Two main conclusions about the various attempts at reconstructing macroeconomics are that they: (1) suffer from an advanced country bias, and (2) do not pay sufficient attention to employment even in developed countries. The benign neglect of developing countries in reconstructing macroeconomics is not at all surprising, as both post-Great Depression macroeconomics and its orthodox replacement evolved without paying due regard to the particular circumstances and problems of developing countries. The neglect of employment in rethinking macroeconomics shows how deeply orthodoxy still remains embedded in the major institutions, as well as among professional economists and policymakers. There is no sign of any significant shift even when a good deal of research within the BWIs themselves report findings that are contrary to conventional wisdom. Thus, unfortunately, whatever is likely to emerge as post-Great Recession macroeconomics does not seem very encouraging for employment and development. The essays compiled in this volume suggest how macroeconomics can serve the dual objectives of short-term stabilisation and long-term inclusive sustainable development goals with decent and productive employment featuring prominently for both developed and developing countries.
Author: Ben S. Bernanke Publisher: Princeton University Press ISBN: 0691259666 Category : Business & Economics Languages : en Pages : 352
Book Description
From the Nobel Prize–winning economist and former chair of the U.S. Federal Reserve, a landmark book that provides vital lessons for understanding financial crises and their sometimes-catastrophic economic effects As chair of the U.S. Federal Reserve during the Global Financial Crisis, Ben Bernanke helped avert a greater financial disaster than the Great Depression. And he did so by drawing directly on what he had learned from years of studying the causes of the economic catastrophe of the 1930s—work for which he was later awarded the Nobel Prize. Essays on the Great Depression brings together Bernanke’s influential work on the origins and economic lessons of the Depression, and this new edition also includes his Nobel Prize lecture.
Author: Charles J. Whalen Publisher: Edward Elgar Publishing ISBN: 0857934848 Category : Business & Economics Languages : en Pages : 241
Book Description
ÔThis book advances the re-unification of the Institutionalist and Keynesian traditions, now unstoppable, which when last combined eighty years ago proved the power of progressive and pragmatic thought. Let the spirit of Keynes and Commons inspire our new era Ð and perhaps this time a coherent, enduring and useful academic economics may also result.Õ Ð James K. Galbraith, President, Association for Evolutionary Economics (2012) ÔFinancial Instability and Economic Security after the Great Recession is a welcomed volume for a variety of reasons. The book does a good job of: 1) surveying the foundations of Post-Keynesian Institutionalism (PKI); 2) unfolding new ways of understanding and appreciating the economic and institutional insights of Hyman Minsky (which are many); and 3) providing new economic analysis into the recent financial crisis both in the United States and globally. . . How uncertainty affects institutions and individual behavior is something that needs more exploration, and this volume contributes to a much-needed discussion on how both institutionalists and Post-Keynesians can work together on this. . . a very interesting and stimulating book that provides some new insights in the development of both Institutionalist and Post-Keynesian thought.Õ Ð Heterodox Economics Newsletter ÔThis important and fascinating book confirms that policymakers would do well to brush up on their reading of Hyman Minsky as they wrestle with the ongoing effects of the global financial crisis. It makes a compelling case for understanding the current situation as a crisis of capitalism Ð a system that veers between stability and instability Ð and for managing and regulating economies on the basis of MinskyÕs insight that stability breeds instability. MinskyÕs insight was psychological, not merely economic, and this volume furthers the argument for including disciplines such as psychology and philosophy in understanding markets. It also helps us recognize the truth that, in the end, economies are human constructs and it will require strong doses of humanism to successfully manage our economic future.Õ Ð Michael E. Lewitt, Harch Capital Management and author of The Death of Capital: How Creative Policy Can Restore Stability ÔThe volume offers an intriguing economic frame that vastly broadens the possibilities for economic research and shifts the focus of economists from markets to people. . . This volume makes a coherent and articulate case for a new interpretation of existing economic theories with long traditions that could help inform both research and policy in the future.Õ Ð Christian Weller, Perspectives on Work ÔA failing orthodoxy calls out for powerful alternatives. Neoclassical economics is that failed orthodoxy; Whalen and his contributors are the critical alternative. In this finely orchestrated edited volume, the contributors take turns wielding a sledgehammer to demolish the weakened edifice of neoclassical theory. Then, each adds a brick to a new theoretical foundation as they work together to expand upon the Post-Keynesian Institutionalist approach, especially the ideas laid down by Hyman Minsky. Their critique is clear and the alternative theory and policies they present are critical for anyone trying to understand the nature and operation of market-based economies.Õ Ð Dorene Isenberg, University of Redlands, US ÔA convergence of Post Keynesian and Institutional economics, which have much in common, offers a sound and practical way forward after the Great Recession. By drawing inspiration from Hyman Minsky and tracing similarities in the economics of Veblen, Commons and Keynes, this book pursues such a convergence in an original and thought-provoking manner. The result is a new way of thinking about economics, one based on serious economic theory and rooted firmly in economic reality.Õ Ð Philip Arestis, University of Cambridge, UK ÔFinancial Instability and Economic Security after the Great Recession explores the close relationship between Institutional and Post Keynesian economics, thereby contributing greatly to our understanding of the recent Ð indeed, still ongoing Ð crisis in the U.S. economy and global financial markets. Together these two schools of thought provide coherent diagnoses and prescriptions that are wholly lacking in orthodox neoclassical theory. We are reminded that institutions matter, unregulated financial markets are not self-correcting, economies stall at equilibriums far below potential, and activist government is the only path to rebuilding a stable and balanced economy. This book will help greatly in the important task of rethinking economics and pointing us in the direction of reform and recovery.Õ Ð Timothy A. Canova, Chapman University School of Law, US ÔFor those who take the work of Hyman Minsky seriously, this collection of essays provides a most welcome and refreshing examination of modern economic reality. It also demonstrates just how fruitful a conjoining of Post Keynesian and Institutionalist theory can be. Whalen has chosen his authors wisely, and, taken as a whole, their contributions provide an illuminating inquiry into what Minsky called Òmoney-manager capitalismÓ. The authors continue in the Minsky tradition, complementing his theoretical work and driving it forward. I highly recommend this book to not only economists who consider themselves Post Keynesian or Institutionalist, but to all who are looking for a way out of the theoretical impasse posed by conventional economics.Õ Ð John Henry, University of Missouri-Kansas City, US ÔIn the 1930s, economic theory and policy underwent dramatic change; such a shift occurs rarely and only in times of great calamity. We are in a similar period today, and this book enlightens economic policy and contributes to change that is ongoing in the mainstream of economic thinking. Economists and policymakers alike will benefit from this book.Õ Ð Ronnie J. Phillips, Colorado State University, US ÔCharles Whalen has been the torch-bearer for Post-Keynesian Institutionalism for many years. The fruit of his thought and time is reaped in the publication of this valuable work that should be of interest to all economists, particularly those concerned with the macroeconomic workings of the real economy. While there are multiple authors, Whalen wrote or co-authored half of the chapters, giving the book coherence not usually found in a collection of essays; a first-rate book.Õ Ð Charles K. Wilber, University of Notre Dame, US ÔThe end of the Great Moderation (a period characterized by modest business cycles) and the demise of its intellectual underpinnings, such as the efficient market hypothesis, opens the door to fresh thinking about the evolution of the US and world economies. This volume responds with a compendium of insights that grow out of Post-Keynesian Institutionalism. Central constructs in the analysis Ð essential to understanding the new Great Instability and to generating constructive policy responses Ð include money-manager capitalism, financial regulation, and economic evolution. The book provides a persuasive basis for reconstructing macroeconomics and for finding sets of policies that could lead to greater world prosperity. This is an important contribution, since much of the intellectual and policy response to the current crisis has challenged the status quo very little and has not inoculated the global economy from further instability.Õ Ð Kenneth P. Jameson, University of Utah, US ÔThis book makes a major contribution toward developing an economic framework to address the policy failures that precipitated the 2007Ð2009 financial crisis and slowed recovery from the Great Recession. It begins that process with wonderfully clear analyses of the influence of earlier non-classical economic thinkers on Keynes and Minsky and then uses their insights and hypotheses to critique the economic thinking that failed to anticipate the crisis. But, unlike many other excellent analyses of recent events, it also identifies policy options capable of preventing future crises and ensuring a more rapid recovery. The authors have laid a strong foundation for the theoretical perspective required to secure the broadly shared prosperity that many view as the overriding objective of an economic system.Õ Ð Jane DÕArista, University of Massachusetts at Amherst, US ÔInstitutionalists and Post Keynesians have a great deal in common, so much so that it is surprising how little cooperation there has been between them. This innovative and engaging volume will help to put this right. Several of the contributors identify the ideas of Hyman Minsky as providing a bridge between the two traditions (in much the same way as Micha Kalecki connects Post Keynesian and Marxian thought), suggesting important ways these camps can profit from each otherÕs insights. Across the volume, the crucial concepts of ÔfuturityÕ, expectations and fundamental uncertainty shape the authorsÕ approach to economic theory, while an insistence on the need for a Ômore wisely managed capitalismÕ unites their policy discussions. This book deserves to be widely read; it will have important consequences.Õ Ð John E. King, La Trobe University, Australia This timely book rethinks economic theory and policy by addressing the problem of economic instability and the need to secure broadly shared prosperity. It stresses that advancing economics in the wake of the Great Recession requires an evolutionary standpoint, greater attention to uncertainty and expectations, and the integration of finance into macroeconomics. The result is a broader array of policy options Ð and challenges Ð than conventional economics presents. Building on the pioneering work of Thorstein Veblen, John R. Commons and John Maynard Keynes, the authors synthesize key insights from Institutional and Post Keynesian economics into Post-Keynesian Institutionalism. Then they use that framework to explore an array of economic problems confronting the United States and the world. Inspired by the work of Hyman Minsky, the authors place financial relations at the center of their analysis of how economies operate and change over time. Students and scholars of macroeconomics and public policy will find this book of interest, as will a wider audience of financial analysts, policymakers and citizens interested in understanding economic booms and downturns.
Author: Jan Toporowski Publisher: Anthem Press ISBN: 0857286544 Category : Business & Economics Languages : en Pages : 159
Book Description
The essays in this volume explain the key structural features of financial inflation that give rise to financial crisis. These features include excessive reliance on finance to maintain economic activity through rising asset prices. Reliance on asset inflation induces a preoccupation with property values and a new social divide between the asset-rich and the asset-poor that undermines the culture of the welfare state. When debt can no longer be supported by cash flow from asset markets, excess debt plunges economies into economic depression.
Author: Michael W. Clark Publisher: ISBN: Category : Economics Languages : en Pages :
Book Description
This dissertation is a collection of two essays on the macroeconomic volatility and the Great Moderation. The first essay examines the causes of the Great Moderation in United States, while the second essay takes an international approach in examining if the Great Moderation was one or multiple events for the industrialized countries. The first essay analyzes the causes of the large decline in aggregate volatility for the United States, phenomenon known as the Great Moderation, one of the most widely recognized characteristics of the modern U.S. economy. However, the literature found no consensus on what caused it. In order to uncover the causes of the Great Moderation we use a new measure of volatility based on the first difference of quarterly growth rates, and a novel approach, exploiting a test for common features. We first test each series for structural change(s) in volatility, and then test for a common feature of a decrease in volatility between the volatility of output and volatility of potential causes of the Great Moderation for both the period prior to the Great Recession (2007:4) and the whole sample through 2010:4. When all the evidence is considered, structural changes in the economy, including increased globalization and improved inventory management, improved monetary policy, and good luck, all appear to have played a significant role, while financial market innovations are unlikely to be a cause of the Great Moderation. The second essay analyzes if the Great Moderation is one event internationally, common across countries, or multiple events. The Great Moderation has been identified in several advanced economies as a general decrease in the volatility of GDP growth, and it is still viewed as one time event. We use structural break test to date the onset of the Great Moderation in eleven developed countries and employ the test for common features in order to determine if the moderation in volatility is common across countries (one event), or if it is more than one event. While we establish that all of the countries studied display a break dating from the late 1970s to mid- 1980s and early 1990s, we discover the moderation of volatility evident in international data is neither concurrent, nor of similar magnitude. We can use this new information to enlighten our search for the cause(s) of the Great Moderation by both eliminating potential causes and increasing the ability to distinguish between causality and coincidence.
Author: Juan Jose Ospina Tejeiro
Author: Juan Jose Ospina Tejeiro
Author: Óscar Dejuán
Author: Barry J. Eichengreen
Author: William L Pittenger
Author: Anis Chowdhury
Author: Ben S. Bernanke
Author: Charles J. Whalen
Author: Barry Z. Cynamon
Author: Jan Toporowski
Author: Michael W. Clark