Financial crises and regulatory responses

نویسندگان
چکیده

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Appendix to "Financial Crises and Political Crises"

PBE Type i: Neither default nor political crisis If V ≤ χL, the costs of default are always larger than the costs of servicing the debt even for the benevolent government. Then in equilibrium, the government proposes to service the debt, which is accepted by the representative agent. Hence the debt is repaid and political crisis is avoided. Neither the benevolent government nor the self interes...

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It is understandable that people ask how the current financial crisis could happen. As the market actors appear irrational, it is also understandable that people—lay people and experts alike—believe that psychological factors play a decisive role. Is there evidence for such a role, and what is the evidence? This monograph reviews, evaluates, and discusses research—primarily psychological resear...

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ژورنال

عنوان ژورنال: International Journal of Disclosure and Governance

سال: 2012

ISSN: 1741-3591,1746-6539

DOI: 10.1057/jdg.2012.9