| 1. | History and institutions | 1 |
| 1.1 Introduction | 1 | |
| 1.2 Historical crises in Europe and the US | 2 | |
| 1.3 Crises and stock market crashes | 5 | |
| 1.4 Currency and twin crises | 9 | |
| 1.5 Crises in different eras | 10 | |
| 1.6 Some recent crises | 14 | |
| 1.6.1 The Scandinavian crises | 14 | |
| 1.6.2 Japan | 15 | |
| 1.6.3 The Asian crisis | 15 | |
| 1.6.4 The Russian crisis and long term capital management (LTCM) | 16 | |
| 1.6.5 The Argentina crisis of 2001–2002 | 17 | |
| 1.7 The costs of crises | 18 | |
| 1.8 Theories of crises | 19 | |
| 1.9 Concluding remarks | 23 | |
| 2. | Time, uncertainty, and liquidity | 27 |
| 2.1 Efficient allocation over time | 27 | |
| 2.1.1 Consumption and saving | 27 | |
| 2.1.2 Production | 36 | |
| 2.2 Uncertainty | 40 | |
| 2.2.1 Contingent commodities and risk sharin | 40 | |
| 2.2.2 Attitudes toward risk | 44 | |
| 2.2.3 Insurance and risk pooling | 48 | |
| 2.2.4 Portfolio choice | 49 | |
| 2.3 Liquidity | 52 | |
| 2.4 Concluding remarks | 57 | |
| 3. | Intermediation and crises | 58 |
| 3.1 The liquidity problem | 59 | |
| 3.2 Market equilibrium | 60 | |
| 3.3 The efficient solution | 64 | |
| 3.4 The banking solution | 72 | |
| 3.5 Bank runs | 74 |
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Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information:
Book title: Understanding Financial Crises.
Contributors: Franklin Allen - Author, Douglas Gale - Author.
Publisher: Oxford University Press.
Place of publication: Oxford, England.
Publication year: 2007.
Page number: vii.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.
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