MARC Record from Library of Congress

LEADER: 02155cam a22003137a 4500
001 2008613041
003 DLC
005 20130605083004.0
007 cr |||||||||||
008 081009s2008 mou sb i000 0 eng
010 $a 2008613041
040 $aDLC$cDLC
050 00 $aHG3879
100 1 $aAllen, Franklin,$d1956-
245 10 $aFinancial system$h[electronic resource] :$bshock absorber or amplifier? /$cby Franklin Allen and Elena Carletti.
260 $aBasel, Switzerland :$bBank for International Settlements,$cc2008.
490 0 $aBIS working papers,$x1682-7678 ;$vno. 257
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file (viewed on Oct. 10, 2008).
500 $a"July 2008."
500 $a"Monetary and Economic Department."
530 $aAlso available in print.
520 3 $aThis paper identifies two types of market failures. The first concerns a coordination problem associated with panics. The problem in analysing this type of market failure from a policy perspective is that there is no widely accepted method for selecting equilibria. The second market failure concerns the incompleteness of financial markets. The essential problem here is that the incentives to provide liquidity lead to an inefficient allocation of resources. The paper outlines three manifestations of market failure associated with liquidity provision: financial fragility, contagion and asset price bubbles. The framework developed allows some insight into the question of when the financial system acts a shock absorber and when it acts as an amplifier. Having identified when there is a market failure, the paper looks at whether there are policies that can correct the undesirable effects of such failures.
504 $aIncludes bibliographical references.
653 $aBank regulation ;$afinancial crisis ;$afinancial intermediation ;$amarket failure
700 1 $aCarletti, Elena.
710 2 $aBank for International Settlements.$bMonetary and Economic Department.
856 42 $3Summary page with link to full-text PDF report$uhttp://www.bis.org/publ/work257.htm