Financial Systems and Economic Crises

Table Of Contents

• Cover
• Title
• Copyright
• About the authors
• About the book
• This eBook can be cited
• Preface
• Table of Contents
• List of Abbreviations
• Introduction
• 1 The Radiography of the Financial System, with a Focus on the United States
• 1.1. The different aspects of the financial system in general
• 1.2. Financial – monetary economy fundamentals
• 1.2.1 Money supply: Money creation by the central and commercial banks
• 1.2.2 Money creation and “monetary destruction”
• 1.2.3 Questioning the money multiplier process
• 1.2.4 Non-neutrality and super non-neutrality of money
• 1.3. Developments in the current U.S. financial system
• 1.3.1. Loan and bank credit decoupling from money and nonbanking superfinancialization
• 1.3.1.1. Credit aggregates: Suitable for nominal GDP targeting?
• 1.3.1.2. Financial interconnections
• 1.3.1.3. Securitization, credit origins, and holdings
• 1.3.2. The Fed’s role in causing the great moderation
• 1.3.3. The movement of long-term and short-term interest rates
• 1.4. Preliminary conclusions
• 2 Historical, Conceptual, and Empirical Approaches to Crises
• 2.1. The influence of the financial system on economic crises: The historical context
• 2.1.1. Tulip crisis
• 2.1.2. The panic of 1907
• 2.1.3. Great depression of the 1930s
• 2.1.4. Great stagflation
• 2.1.5. Dotcom mania
• 2.1.6. The great recession
• 2.2. Considerations about equilibrium illusions
• 2.3. The current status of the literature on economic and financial crises and its critique
• 2.4. An examination of relevant indicators to forecast the crisis
• 2.4.1. The omnipresence of a financial indicator, as a proof of the inseparability of business cycle from financial cycle
• 2.4.2. Instances where inverted yield curve and credit variables may fail to predict crisis
• 2.4.3. Other suitable indicators for predicting crises
• 2.4.4. Signals that are too weak or have lost their ability to add information
• 2.5. Preliminary conclusions
• 3 Coordinates and Determinants of Financial Instability
• 3.1. Evidence from the literature
• 3.2. Main determinants of financial instability
• 3.2.1. Capital mobility and the size of capital
• 3.2.2. Decreasing profitability for financial institutions
• 3.2.3. Economic inequality
• 3.2.4. Low and stable inflation
• 3.3. Preliminary conclusions
• 4 Potential Solutions for Financial Stability
• 4.1. The advantages of Chicago Plan
• 4.2. The benefits of a cashless society
• 4.3. Capital requirements management
• 4.4. Inflation targeting versus price-level targeting, inflation channel, and nominal GDP
• 4.5. Yield curve and interest rates management
• 4.6. Considerations on “helicopter money drop” solution
• 4.7. Preliminary conclusions
• 5 Economic Crisis Forecast Model
• 5.1. The usual recession mechanism
• 5.2. The model proposal
• 5.3. Testing the predictive power of the model based on financial indicators of the Great Recession
• 5.4. Coronavirus recession and its correlation with the proposed model
• 5.5. Preliminary conclusions
• References
• List of Appendixes
• List of Figures
• List of Tables