A liquidity shortage, beginning in late 2007, sparked a series of events that resulted in the collapse of large financial institutions and dramatic downturns in key stock markets. The crisis played a significant role in determining extensive failures of economic activities, declines in consumer demand and wealth, and a severe recession in many areas of the globalised world. Even more depressing consequences were avoided owing to exceptional interventions by monetary authorities and governments, which directly supported the financial markets with bailout policies and massive injections of liquidity. These interventions resulted in further important consequences, with the ex ante distortion of incentives—leading intermediaries to choose arrangements with excessive illiquidity and thereby increasing financial fragility—being the most important.

Preface. Financial Crisis, Bank Behaviour and Credit Crunch

ROSSI, STEFANIA PATRIZIA SONIA;
2016

Abstract

A liquidity shortage, beginning in late 2007, sparked a series of events that resulted in the collapse of large financial institutions and dramatic downturns in key stock markets. The crisis played a significant role in determining extensive failures of economic activities, declines in consumer demand and wealth, and a severe recession in many areas of the globalised world. Even more depressing consequences were avoided owing to exceptional interventions by monetary authorities and governments, which directly supported the financial markets with bailout policies and massive injections of liquidity. These interventions resulted in further important consequences, with the ex ante distortion of incentives—leading intermediaries to choose arrangements with excessive illiquidity and thereby increasing financial fragility—being the most important.
9783319174129
File in questo prodotto:
File Dimensione Formato  
Preface_Springer_2016.pdf

non disponibili

Tipologia: Documento in Versione Editoriale
Licenza: Digital Rights Management non definito
Dimensione 114.54 kB
Formato Adobe PDF
114.54 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11368/2900438
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact