Is the ECB doing QE?

Charles Wyplosz 12 September 2014

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The 4 September announcement by Chairman Mario Draghi has been greeted with enthusiasm by the markets and the media. It has been long awaited, and many believe that the ECB has finally delivered. This is not sure. The ECB intends to buy large amounts of securities backed by bank lending to households (mortgages) and to firms.

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Topics:  Exchange rates Financial markets Monetary policy

Tags:  quantitative easing, QE, monetary policy, unconventional monetary policy, ECB, securitisation, bank lending, Europe, eurozone, Subprime, stress tests, deleveraging, recapitalisation, depreciation, exchange rates, euro, central banking

Congressional influence as a determinant of subprime lending

Stuart A Gabriel, Matthew E. Kahn, Ryan K Vaughn 05 May 2013

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An implosion in housing markets figured prominently in the 2007 meltdown in capital markets and the downturn in the global economy. Neither analysts on Wall Street nor regulators in Washington anticipated the depth of the crisis, its geographic and asset-class contagion, or its adverse effects on household balance sheets. What was emblematic was the pervasive failure of subprime mortgages. The loans that were provided substantially eased credit qualification and homeownership opportunity to low credit-quality borrowers.

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Topics:  Global crisis Politics and economics

Tags:  US, Subprime

Distorted beliefs and the financial sector

Ing-Haw Cheng, Sahil Raina, Wei Xiong 11 April 2013

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What led Wall Street to take excessive risks in the housing market before the 2008 financial crisis?

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Topics:  International finance

Tags:  housing, Subprime, cognitive dissonance

Solving the macroeconomic policy challenge in Europe

Richard Wood 19 December 2012

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Countries in Europe are either slipping into recession or experiencing worsening depression. Economies are headed in the wrong direction, and the malaise is spreading. The current orthodoxies are failing.

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Topics:  Macroeconomic policy

Tags:  Subprime, debt, macroeconomic policy, quantitative easing

Did the mortgage credit boom contribute to the decline in US racial segregation?

Romain Rancière, Amine Ouazad 16 March 2012

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Topics:  Frontiers of economic research Migration Poverty and income inequality

Tags:  US, Subprime, racial segregation, race

Household debt and macroeconomic fluctuations

Amir Sufi, Atif Mian 29 April 2010

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There once was a decade in US history in which financial innovation led to a sharp rise in the flow of credit to households. Durable goods consumption increased dramatically as household debt climbed to over 100% of GDP. The subsequent economic downturn was tragic, and the severity of the malaise was closely related to the preceding rise in household leverage (see Eichengreen and Michener 2003, Mishkin 1978, and the chart from David Beim at npr.org).

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Topics:  Global crisis

Tags:  house prices, Subprime, global crisis

Liquidity Risk Charges as a Macroprudential Tool

Javier Suarez, Enrico Perotti,

Date Published

Sat, 11/07/2009

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Financial markets Global crisis

URL

http://www.cepr.org/pubs/PolicyInsights/CEPR_Policy_Insight_040.asp

Download CEPR Policy Insight No. 40 from the CEPR website here.

Tags
Subprime, reform, financial crisis

Liquidity insurance for systemic crises

Enrico Perotti, Javier Suarez,

Date Published

Fri, 02/27/2009

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Tags
Subprime, reform, financial crisis

Liquidity insurance

Enrico Perotti, Javier Suarez 27 February 2009

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Capital requirements were aimed at absorbing asset losses, not coping with correlated liquidity risk. Securitisation runs around this Maginot line by shifting long-term assets in outside legal boxes funded by short-term markets. Yet banks kept essentially most risk through back-up credit lines, which forced all risk back when subprime mortgages were repriced. Yet the real damage came once panic spread, with losses well beyond what subprime prices would justify. Why?

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Topics:  Financial markets

Tags:  Subprime, reform, financial crisis

Vox's first book: The first global financial crisis of the 21st century

Carmen M Reinhart interviewed by Romesh Vaitilingam,

Date Published

Mon, 07/07/2008

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Topics

Financial markets
Tags
Subprime, subprime crisis

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Vox launches subprime book
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