The First Global Financial Crisis of the 21st Century Part II: June – December, 2008

Andrew Felton, Carmen Reinhart 23 February 2009





Section 1: The spread of the crisis to the rest of the world

Jon Danielsson: The first casualty of the crisis: Iceland
Philip Lane: Iceland: The future is in the EU
Gylfi Zoega: Iceland faces the music
Willem Buiter and Anne Sibert: The collapse of Iceland’s banks: the predictable end of a non-viable business model
Helmut Reisen: The fallout from the global credit crisis: Contagion - emerging markets under stress
Carmen Reinhart and Vincent Reinhart: From capital flow bonanza to financial crash
Guilermo Calvo and Ruby Loo-Kung: Rapid and large liquidity funding for emerging markets
Heiko Hesse: Stock market wealth effects in emerging market countries
Andreas Freytag and Gernot Pehnelt: The political economy of debt relief
Arvind Subramanian: India’s credit crunch conundrum
Arvind Subramanian: Preserving financial sector confidence, not monetary easing, is key
Jonh Muellbauer: The folly of the central banks of Europe
Daniel Gros and Stefano Micossi: Crisis management tools for the euro-area
Carmine Di Noia
: A proposal on financial regulation in Europe for the next European Council
Marco Pagano: The European response to the crisis: Not quite there yet
Salvatore Rossi: Finance, market, globalisation: a plot against mankind?
Daniel Gros: Can Europe take care of its own financial crisis?
Avinash Persaud: The financial crisis may hasten European integration but slow global banking
Daniel Gros and Stefano Micossi: A call for a European Financial Stability Fund
Luc Laeven and Ross Levine: Governance of banks
Giuseppe Bertola and Anna Lo Prete: Finance, redistribution, globalisation
Kristin Forbes: What Next for the Dollar? The Role of Foreigners
Carmen Reinhart and Vincent Reinhart: Is the US too big to fail?
Barry Eichengreen: Can the IMF save the world?

Section 2: What is wrong with the traditional economic/financial viewpoint and models?

Richard Dale: The financial meltdown is an academic crisis too
John Kiff, Paul Mills, and Carolyne Spackman: European securitisation and the possible revival of financial innovation
Marco Pagano: The price of transparency
Daniel Cohen: The Panglossian World of Finance
Hans-Werner Sinn: What can be learned from the banking crisis
Beatriz Mariano: Do reputational concerns lead to reliable ratings?
Charles Goodhart: The Financial Economists Roundtable’s statement on reforming the role of SROs in the securitisation process
Lasse Heje Pedersen: Liquidity risk and the current crisis
Avinash Persaud: How risk sensitivity led to the greatest financial crisis of modern times
Nathaniel Frank, Brenda González-Hermosillo, and Heiko Hesse: Transmission of liquidity shocks: Evidence from the 2007 subprime crisis
Xavier Freixas and Bruno Parigi: The lender of last resort of the 21st century
Avinash Persaud: Reason with the messenger; don’t shoot him: value accounting, risk management and financial system resilience
Frank Heinemann: Escaping from a Combined Liquidity Trap and Credit Crunch
Jon Danielsson: Complexity kills
Nicholas Bloom: Will the credit crunch lead to recession?
Nicholas Bloom: The credit crunch may cause another great depression
Rafael Repullo and Javier Suarez: The procyclical effects of Basel II
Charles Goodhart: Central banks’ function to maintain financial stability: An uncompleted task
Alberto Giovannini: Let banks be banks, let investors be investors
Virginie Coutert and Mathieu Gex: Stormy Weather in the Credit Default Swap Market
Francesco Giavazzi: Why does the spread between LIBOR and expected future policy rates persist, and should central banks do something about it?

Section 3: The proper governmental response

Barry Eichengreen: Anatomy of the financial crisis
Charles Calomiris: The subprime turmoil: What’s old, what’s new, and what’s next
Romain Rancière: An international perspective on the US bailout
Erik Berglöf and Howard Rosenthal: Not the end of capitalism
Giancarlo Corsetti and Gernot Müller: The effectiveness of fiscal policy depends on the financing and monetary policy mix
Daniel Gros: Fiscal policy and the credit crunch: What will work?
Micael Castanheira: Episode V: Expectations strike back
Andrea Boltho and Wendy Carlin: Germany needs high wage settlements and a serious fiscal stimulus
Luigi Zingales: Plan B
Charles Wyplosz: Why Paulson is (maybe) right
Luigi Spaventa: A (mild) defence of TARP
Avinash Persaud: The right alternative to Paulson's plan
Willem Buiter: The Paulson Plan: A useful first step but nowhere near enough
Viral Acharya: From recapitalisation to restructuring and reforms
Luigi Zingales: Why Paulson is wrong
Charles Calomiris: A matched preferred stock plan for government assistance
Jeffrey Frankel: An emerging consensus against the Paulson Plan: Government should force bank capital up, not just socialise the bad loans
Marco Onado: Banks’ losses and capital: The new version of the paradox of Achilles and the tortoise
Ricardo Cesari: TARP2: A totally alternative relief programme
Tito Boeri: Involving European citizens in the benefits of the rescue plan: The political paradoxes of bank socialism
Marco Pagano: What is a reverse auction?
Daniel Gros: ‘No recourse’ and ‘put options’: Estimating the ‘fair value’ of US mortgage assets
Javier Suarez: Bringing money markets back to life
Viral Acharya and Raghu Sundaram: The other part of the bailout: Pricing and evaluating the US and UK loan guarantees
Daniel Gros and Stefano Micossi: The beginning of the end game…
Charles Wyplosz: Financial crisis resolution: It’s all about burden-sharing
Guillermo de la Dehesa: Is the euro area facing a credit crunch or a credit squeeze?
Stijn Claessens, M Ayhan Kose and Marco Terrones: Global financial crisis: How long? How deep?
Luc Laeven: The cost of resolving financial crises
Keiichiro Kobayashi: Financial crisis management: Lessons from Japan’s failure
Barry Eichengreen: And now the Great Depression
Eric Hughson and Marc Weidenmier: Financial markets and a lender of last resort
Esther Duflo: Too many bankers?


Ph.D. student in the Public Policy department, University of Maryland and Financial Economist, Federal Deposit Insurance Corporation

Minos A. Zombanakis Professor of the International Financial System, Harvard Kennedy School


CEPR Policy Research