Challenge of Financial Stability A New Model and its Applications
Produktdetaljer
Biografisk notat
Charles A.E. Goodhart, Emeritus Professor of Banking and Finance, and long-standing member of the Financial Markets Group, at the London School of Economics, UK and Dimitrios P. Tsomocos, Professor University Reader in Financial Economics and Fellow in Management, Saïd Business School and St. Edmund Hall, University of Oxford, UK‘<i>Without doubt, the Goodhart and Tsomocos framework of endogenous default with credit chain is part of a new paradigm for explaining the current financial crisis which is worth betting on it.’</i>
- Jean-Bernard Chatelain, Zeitschrift für Nationalökonomie,
The authors expertly show how good regulatory policy can be implemented and that its effects on the real as well as the nominal side of the economy can be properly analyzed. The core of their approach is to take realistic account of the interaction between endogenous default, agent heterogeneity and money and liquidity, and suggest how a quantifiable metric of financial fragility could be developed.
This insightful book will serve as a basis for future work on financial stability management for both academics and policy makers and provide guidance on how to undertake crisis prevention and resolution.