nep-ban New Economics Papers
on Banking
Issue of 2022‒10‒10
24 papers chosen by
Sergio Castellanos-Gamboa, , Pontificia Universidad Javeriana

  1. How to release capital requirements during a pandemic? Evidence from euro area banks By Couaillier, Cyril; Reghezza, Alessio; Rodriguez d’Acri, Costanza; Scopelliti, Alessandro
  2. Monetary Interventions and the Rise of Non-Bank Lenders By Gianluca Cafiso; Giulia Rivolta
  3. The real effects of FinTech lending on SMEs: Evidence from loan applications By Afonso Eca; Miguel A. Ferreira; Melissa Porras Prado; A. Emanuele Rizzo
  4. Credit Card Profitability By Robert M. Adams; Vitaly M. Bord; Bradley Katcher
  5. Predicting European Banks Distress Events: Do Financial Information Producers Matter? By Quentin Bro de Comères
  6. Effect of abnormal credit expansion and contraction on GDP per capita in ECOWAS countries By Ozili, Peterson K; Oladipo, Olajide; Iorember, Paul Terhemba
  7. Bank Stress Testing of Physical Risks under Climate Change Macro Scenarios: Typhoon Risks to the Philippines By Ms. Hiroko Oura; Mr. Fabian Lipinsky; Stephane Hallegatte; Paola Morales; Nicola Ranger; Martijn Gert Jan Regelink; Henk Jan Reinders
  8. How does the Bank of Canada’s balance sheet impact the banking system? By Daniel Bolduc; Brad Howell; Grahame Johnson
  9. Microfinance Loan Officers Before and During Covid-19: Evidence from India By Czura, Kristina; Englmaier, Florian; Ho, Hoa; Spantig, Lisa
  10. Supporting small firms through recessions and recoveries By Diana Bonfim; Cláudia Custódio; Clara Raposo
  11. Evaluating market risk from leveraged derivative exposures By Jukonis, Audrius
  12. Financial inclusion washing By Ozili, Peterson K
  13. More Than Words: Fed Chairs' Communications During Congressional Testimonies By Michelle Alexopoulos; Xinfen Han; Oleksiy Kryvtsov; Xu Zhang
  14. Enhancing private and public risk sharing: lessons from the literature and reflections on the COVID-19 crisis By Cimadomo, Jacopo; Gordo Mora, Esther; Palazzo, Alessandra Anna
  15. Interview with St. Louis Fed President James Bullard By James B. Bullard
  16. New forecasting methods for an old problem: Predicting 147 years of systemic financial crises By du Plessis, Emile; Fritsche, Ulrich
  17. A Q & A With Jim Bullard, President And CEO Of The Federal Reserve Bank In St. Louis By James B. Bullard
  18. Improving MSMEs’ access to start-up financing in ASEAN countries By Maran, Raluca
  19. The Trilemma for Low Interest Rate Macroeconomics By Jean-Baptiste Michau
  20. Exchange-Rate Swings and Foreign Currency Intervention By Andrew Filardo; Thomas McGregor; Mr. R. G Gelos
  21. Vietnam Macroeconomic Fundamentals at International Integration: Literature Review and Implications for Stabilize Inflation Currently By Ly Dai Hung; Pham Thanh Cong; Tran Mai Trang
  22. Is a Global Recession Imminent? By Justin Damien Guenette; M. Ayhan Kose; Naotaka Sugawara
  23. What analytical framework for Sovereign Money? Some insight from the 100% Money literature, and a comment on criticisms By Samuel Demeulemeester
  24. "Les causes économiques et politiques de la crise financière de 2008" By Marie Daumal

  1. By: Couaillier, Cyril; Reghezza, Alessio; Rodriguez d’Acri, Costanza; Scopelliti, Alessandro
    Abstract: This paper investigates the impact of the capital relief package adopted to support euro area banks at the outbreak of the COVID-19 pandemic. By leveraging confidential supervisory and credit register data, we uncover two main findings. First, capital relief measures support banks' capacity to supply credit to firms. Second, not all measures are equally successful. Banks adjust their credit supply only if the capital relief is permanent or implemented through established processes that foresee long release periods. By contrast, discretionary relief measures are met with limited success, possibly owing to the uncertainty surrounding their capital replenishment path. Moreover, requirement releases are more effective for banks with a low capital headroom over requirements and do not trigger additional risk-taking. These findings provide key insights on how to design effective bank capital requirement releases in crisis time. JEL Classification: E61, G01, G18, G21
    Keywords: bank capital requirements, coronavirus, countercyclical policy, credit register, macroprudential policy
    Date: 2022–09
  2. By: Gianluca Cafiso; Giulia Rivolta
    Abstract: The amount of assets managed by non-bank lenders has increased significantly over the last decades. Our research aims to clarify whether such an increase has had any impact on the effectiveness of monetary policy. To this end, we consider several credit aggregates granted from bank and non-bank institutions for different scopes and developments in the US economy. Our analysis is based on the estimation of a large Bayesian VAR. The results suggest that the rise of non-bank lenders has reduced and altered the monetary policy transmission mechanism.
    Keywords: bank loans, non-bank loans, monetary interventions, Bayesian VAR
    JEL: E44 E51 G20 G21 C11
    Date: 2022
  3. By: Afonso Eca; Miguel A. Ferreira; Melissa Porras Prado; A. Emanuele Rizzo
    Abstract: We examine the effects of FinTech lending on firm policies using proprietary data on loan applications and loans granted from a peer-to-business platform. We find that FinTech serves high quality and creditworthy small businesses who already have access to bank credit. Firms access FinTech to obtain long-term unsecured loans and reduce their exposure to banks with less liquid assets, stable funds, and capital. We find that firms with access to FinTech loans significantly increase investment, employment, and sales growth relative to firms that get their loan application rejected. We identify these effects by exploiting the number of banks in each municipality as a source of exogenous variation in the probability of obtaining a FinTech loan. Our findings suggest that FinTech allows firms to improve their financial flexibility and reduce bank dependence.
    Keywords: FinTech, SMEs, Small business lending, Lending relationships, Firm growth, Investment, Leverage, Debt structure
    JEL: G21 G23 O33
    Date: 2022
  4. By: Robert M. Adams; Vitaly M. Bord; Bradley Katcher
    Abstract: Credit cards are one of the most ubiquitous consumer financial products in the United States, with more than 75 percent of households owning at least one general purpose credit card in 2019. According to the G.19 Consumer Credit Statistical release, revolving consumer credit, which mainly consists of credit cards and related plans, stood at over one trillion dollars at the end of 2021.
    Date: 2022–09–09
  5. By: Quentin Bro de Comères (CRIEF - Centre de recherche sur l'intégration économique et financière - Université de Poitiers)
    Abstract: This article assesses the predictive power of sell-side stock analysts and credit rating agencies on the prevision of European banks distress events by introducing their respective disclosures into a logit early-warning system over the 2000-2019 period. As direct bank failures are rare in Europe, we construct a dataset accounting for direct failures and state and private sector interventions. The model is calibrated to minimize the loss of a decision-maker committed to prevent impending distress events and is estimated in a real-time fashion. We also control for bank- and macro-level data. We find both financial information producers' disclosures to display informative and predictive performance on bank distress risk up to two years in advance.
    Keywords: Bank Distress,Early Warning Systems,Financial Analysts,Credit Rating Agencies
    Date: 2022–08–17
  6. By: Ozili, Peterson K; Oladipo, Olajide; Iorember, Paul Terhemba
    Abstract: We investigate the impact of abnormal credit expansion and contraction on the GDP per capita of ECOWAS countries. We analyse abnormal credit from two dimensions: first, the impact of abnormal credit contraction on GDP per capita, and second, the impact of abnormal credit expansion on GDP per capita. Using data for 10 ECOWAS countries from 1993 to 2021, we find evidence that abnormal credit contraction reduces the GDP per capita of ECOWAS countries. We also find some evidence that abnormal credit expansion reduces the GDP per capita of ECOWAS countries. More specifically, a unit increase in abnormal credit contraction decreases GDP per capita by 0.99 percent while a unit increase in abnormal credit expansion decreases GDP per capita by only 0.1 percent. The findings confirm that ‘too little’ or ‘too much’ credit does not improve economic output per person in immature financial systems. We also observe that banking sector solvency and a strong legal system have a positive effect on the GDP per capita of ECOWAS countries while banking sector efficiency has a negative effect on GDP per capita.
    Keywords: finance, credit, economic growth, economic output, ECOWAS, GDP per capita, abnormal credit, domestic credit to private sector.
    JEL: E32 G21 G28
    Date: 2022
  7. By: Ms. Hiroko Oura; Mr. Fabian Lipinsky; Stephane Hallegatte; Paola Morales; Nicola Ranger; Martijn Gert Jan Regelink; Henk Jan Reinders
    Abstract: Bank stress tests of climate change risks are relatively new, but are rapidly proliferating. The IMF and World Bank staff collaborated to develop an experimental macro scenario stress testing approach to examine physical risks for banks by building a dynamic stochastic general equilibrium model linked to global climate and a catastrophe risk model specifically for the Philippines. Our model shows that the impact of extremely rare typhoons on GDP could already be systemic and worsen substantially with climate change. However, bank capital declines only modestly unless the event is compounded with other disasters, partly thanks to the strength of Philippines’ banks and economy before the COVID crisis. However, more work is needed before drawing strong conclusions about the relevance of climate risk, as the model focused only on typhoons’ physical capital destructions and their macroeconomic-level transmissions to banks.
    Keywords: Climate change; bank; stress test; financial stability; CAT model; disasters; bank stress testing; bank stress tests; climate change macro scenario; annex I. macro scenario model; climate change stress test; Natural disasters; Stress testing; Financial sector stability; Global; climate scenario; climate model; physical capital; simulation result
    Date: 2022–08–19
  8. By: Daniel Bolduc; Brad Howell; Grahame Johnson
    Abstract: The COVID‑19 pandemic caused severe stress in fixed-income markets. In response, in April 2020, the Bank of Canada launched the Government of Canada (GoC) bond purchase program. Initially, the program focused on restoring market functioning in the GoC bond market. In July 2020, that focus shifted to providing additional monetary stimulus through quantitative easing (QE).
    Keywords: Financial institutions; Financial stability; Monetary policy
    JEL: E E51 G G23 G32
    Date: 2022–09
  9. By: Czura, Kristina (University of Groningen); Englmaier, Florian (LMU Munich); Ho, Hoa (LMU Munich); Spantig, Lisa (RWTH Aachen University and University of Essex)
    Abstract: The Microfinance industry has been severely affected by Covid-19. We provide detailed insights into how loan officers, the key personnel linking the lender to its borrowers, are affected in their performance and adapt their work to the pandemic. We use administrative records of an Indian Microfinance Institution and detailed panel survey data on performance, performed tasks, and work organization to document how the work environment became more challenging during the pandemic. Loan officers operate in a setting where work from home is hard to implement due to the nature of the tasks and technological constraints. The usual performance indicators appear to be mainly driven by external factors such as the nation-wide debt moratorium. Loan officers worked similar hours, but engaged less in planning activities and completed fewer of the usual tasks. Work perceptions and mental health of loan officers reflect these changes, and perceived stress was particularly high during the period of the debt moratorium.
    Keywords: microfinance; loan officers; covid-19; work organization; India;
    JEL: J22 M54 G21
    Date: 2022–03–23
  10. By: Diana Bonfim; Cláudia Custódio; Clara Raposo
    Abstract: We use variation in the access to a government credit certification program to estimate the financial and real effects of supporting small firms. This program has been implemented during the global financial crisis, but has remained active ever since, allowing us to analyze its effects both during recessions and recoveries. Eligible firms have access to government loan guarantees and a credit quality certification. We estimate real effects using a multidimensional regression discontinuity design. We find that eligible firms borrow more and at lower rates than non-eligible firms, allowing them to increase investment and employment during crises. Industry-level analysis shows reduced productivity heterogeneity in more exposed industries, which is consistent with improved credit allocation. However, when the economy is recovering the effects of the program are less pronounced and centered on the certification component.
    Keywords: Small Firms’ Financing, Credit Rating, Credit Certification, Cost of Debt, Investment
    JEL: G38 G30 G01
    Date: 2022–09
  11. By: Jukonis, Audrius
    Abstract: Market participants use leveraged derivatives to gain access to equity market exposure through broker banks. Leverage and interconnectedness via overlapping portfolios of dealer banks can amplify adverse market movements, potentially causing sizeable losses. I propose a model, based on granular data, to simulate losses from a banks’ trading book in case of an adverse market scenario. Following a move in asset prices, banks mark their positions and issue margin calls; some (leveraged) counterparties fail to pay their margins, forcing banks to liquidate their positions causing a pressure on asset prices due to market impact. The impact is amplified because of the leverage and when counterparties are exposed to multiple banks over the same underlying. I employ the model to assess current capital and margin rules in covering risks from broker’s exposure to highly leveraged clients. JEL Classification: C60, G23, G13, G17
    Keywords: EMIR, Initial margin, leverage, market risk, Variation margin
    Date: 2022–09
  12. By: Ozili, Peterson K
    Abstract: This paper presents a discussion about financial inclusion washing. It was argued that financial inclusion washing is the deliberate or unintentional use of exaggerated claims or misleading claims to describe an entity’s commitment to increase the level of financial inclusion. The paper showed that many entities are at risk of practicing financial inclusion washing such as international development organizations, aid organizations, government agencies, central banks, financial institutions, financial inclusion support groups and associations, among others. The paper also highlighted the manifestations, motivations and consequences of financial inclusion washing. The paper further identified ways through which entities can avoid financial inclusion washing. Financial inclusion washing has not been considered to be a crime although it should be.
    Keywords: Financial inclusion washing, financial inclusion, formal accounts, banked adults, access to finance.
    JEL: G00 G02 G20 G29 I31
    Date: 2022
  13. By: Michelle Alexopoulos; Xinfen Han; Oleksiy Kryvtsov; Xu Zhang
    Abstract: We study soft information contained in congressional testimonies by the Federal Reserve Chairs and analyze its effects on financial markets. Using machine learning, we construct high-frequency measures of Fed Chairs' and Congress members' emotions expressed via their words, voice and face. Increases in the Chair's text-, voice-, or face-emotion indices during the testimony generally raise the S&P500 index and lower the VIX. Stock prices are particularly sensitive to both the members' questions and the Fed Chair's answers about issues directly related to monetary policy. These effects add up and propagate after the testimony, reaching magnitudes comparable to those after a policy rate cut. Our findings resonate with the view in psychology that communication is much more than words and underscore the need for a holistic approach to central bank communication.
    Keywords: Central bank communications, Financial markets, High-frequency identification, Facial emotion recognition, Vocal signal processing, Textual Analysis
    JEL: E52 E58 E71
    Date: 2022–09–21
  14. By: Cimadomo, Jacopo; Gordo Mora, Esther; Palazzo, Alessandra Anna
    Abstract: This article surveys the literature on consumption risk sharing, focusing on the findings for the euro area and for the United States, but also presenting evidence for other countries. The literature examined found that risk sharing is higher in more mature federations, such as the United States, than in the euro area. The papers surveyed suggest that state/country-specific output shocks are primarily smoothed out through the capital and credit channel, whereas the fiscal channel as a minor role, especially in the euro area. Overall, about 70% of shocks is smoothed in the United States while just 40% in the euro area. At the same time, our analysis of the response to the COVID-19 crisis indicates that risk sharing in the euro area has been more resilient than it was during the global financial crisis of 2008-09. Overall, our results point to the need for further improvements to the private and public risk-sharing channels in the euro area to ensure more effective cushioning against asymmetric shocks and to boost progress towards the completion of European Monetary Union (EMU). JEL Classification: C23, E62, G11, G15
    Keywords: COVID-19 crisis, EMU reform, Risk sharing
    Date: 2022–09
  15. By: James B. Bullard
    Abstract: Federal Reserve Bank of St. Louis President James Bullard says he has become more supportive of a third straight 75 basis-point interest rate increase and Wall Street is underestimating the likelihood that the Fed will hold rates at higher levels next year.
    Keywords: interest rates; inflation
    Date: 2022–09–09
  16. By: du Plessis, Emile; Fritsche, Ulrich
    Abstract: A reflection on the lackluster growth over the decade since the Global Financial Crisis has renewed interest in preventative measures for a long-standing problem. Advances in machine learning algorithms during this period present promising forecasting solutions. In this context, the paper develops new forecasting methods for an old problem by employing 13 machine learning algorithms to study 147 year of systemic financial crises across 17 countries. It entails 12 leading indicators comprising real, banking and external sectors. Four modelling dimensions encompassing a contemporaneous pooled format through an expanding window, transformations with a lag structure and 20-year rolling window as well as individual format are implemented to assess performance through recursive out-of-sample forecasts. Findings suggest fixed capital formation is the most important variable. GDP per capita and consumer inflation have increased in prominence whereas debt-to-GDP, stock market and consumption were dominant at the turn of the 20th century. Through a lag structure, banking sector predictors on average describe 28 percent of the variation in crisis prevalence, real sector 64 percent and external sector 8 percent. A lag structure and rolling window both improve on optimised contemporaneous and individual country formats. Nearly half of all algorithms reach peak performance through a lag structure. As measured through AUC, F1 and Brier scores, top performing machine learning methods consistently produce high accuracy rates, with both random forests and gradient boosting in front with 77 percent correct forecasts. Top models contribute added value above 20 percentage points in most instances and deals with a high degree of complexity across several countries.
    Keywords: machine learning,systemic financial crises,leading indicators,forecasting,early warning signal
    JEL: C14 C15 C32 C35 C53 E37 E44 G21
    Date: 2022
  17. By: James B. Bullard
    Abstract: Welcome back to Peoria Magazine’s Econ Corner, a recurring feature in which we pose questions to experts about various economic issues and how they affect our lives and careers here in central Illinois. Doing this month’s Q&A is Jim Bullard, president and CEO of the Federal Reserve Bank in St. Louis and one of the most influential economists in the world. In that role, he participates in the Federal Reserve’s Federal Open Market Committee, which regularly convenes – and has been in the news a lot lately – to set the direction of U.S. monetary policy. This conversation has been edited somewhat for length.
    Keywords: inflation; interest rates
    Date: 2022–09–01
  18. By: Maran, Raluca
    Abstract: Lack of access to finance constitutes a major setback to the development of the MSME sector in ASEAN countries. MSMEs are confronted with stringent funding constraints in traditional lending and capital markets, in particular at the early stages of their activity. Demand and supply of capital to MSMEs thus entails more complex issues compared to the larger firms. This paper presents a number of policy actions that have the potential to mitigate the financing challenges faced by MSMEs in ASEAN at the start-up stage by enhancing the potential of alternative funding sources such as business angel investment, crowdfunding, venture capital investment and SME stock markets.
    Keywords: MSMEs; ASEAN; start-up financing; business angels; crowdfunding; venture capital; MSME stock markets; loans and guarantees
    JEL: G32
    Date: 2022–09–02
  19. By: Jean-Baptiste Michau (Ecole Polytechnique, France)
    Abstract: Three desirable goals of macroeconomic policy are: full employment, low inflation, and a low debt level with no Ponzi scheme. This paper shows that, when the natural real interest rate is persistently depressed, at most two of these three goals can be simultaneously achieved. Depending of the parameters of the economy, each of the three possibilities can be the preferred option, resulting in a non-trivial policy trilemma.
    Keywords: Liquidity trap, Ponzi scheme, Secular stagnation.
    JEL: E12 E31 E63 H63
    Date: 2022–09–27
  20. By: Andrew Filardo; Thomas McGregor; Mr. R. G Gelos
    Abstract: This paper develops a new approach for exploring the effectiveness of foreign currency intervention, focusing on real exchange cycles. Using band spectrum regression methods, it examines the role of macroeconomic fundamentals in determining the equilibrium real exchange rate at short-, medium-, and low frequencies. Next, it assesses the effectiveness of FX intervention depending on the degree of cycle-specific misalignments for 26 advanced- and emerging market economies, covering the period 1990–2018, and using different techniques to mitigate endogeneity concerns. Evidence supports the hypothesis that central banks can lean effectively against short-run cyclical misalignments of the real exchange rate. The effects are present in quarterly data—i.e., at policy-relevant horizons. The effectiveness of intervention rises with the size of the misalignment, and with the duration of one-sided interventions. FX sales appear to be somewhat more effective than FX purchases, and intervention is less effective in more liquid FX markets.
    Keywords: Foreign exchange intervention; real exchange rates; equilibrium exchange rate; classical cycles; central banking; band spectrum regression.; exchange rate intervention; macro fundamentals; FX sale; FX purchase; FX intervention; measuring exchange rate misalignment; Exchange rates; Real effective exchange rates; Foreign assets; Global
    Date: 2022–07–29
  21. By: Ly Dai Hung (Vietnam Institute of Economics, Hanoi, Vietnam); Pham Thanh Cong (Vietnam Institute of Economics, Hanoi, Vietnam); Tran Mai Trang (Vietnam Institute of Economics, Hanoi, Vietnam)
    Abstract: The paper analyzes the literature on the Vietnam macroeconomic fundamentals at international integration. The past results focus on the interaction of three main macroeconomic variables including the economic growth, inflation and VND/USD exchange rate, and their response to the external shocks from world economy. Then, the paper focuses on the policy implications to stablize inflation and stimulate economic growth within the current Covid-19 pandemic context. Accordingly, the policy makers need to anchor firmly the inflation expectation by clear and consistent signal with full commitment to fight against the inflation. At the same time, the fiscal and monetary policy needs to be combined so that the public investment is financed by issuance of government bonds with an appropriated quantity so that the interest rate is stabilized.
    Abstract: Bài viết này phân tích các nghiên cứu về kinh tế vĩ mô của Việt Nam trong hội nhập kinh tế quốc tế. Các kết quả trước đây thường tập trung vào sự tương tác của ba biến số nền tảng vĩ mô gồm tăng trưởng kinh tế, tỷ lệ lạm phát và tỷ giá hối đoái VND/USD, và phản ứng của các biến số này trước các biến động bên ngoài từ kinh tế thế giới. Từ đó, bài viết tập trung đưa ra một số hàm ý chính sách nhằm kiềm chế lạm phát và thúc đẩy tăng trưởng kinh tế trong bối cảnh đại dịch Covid-19 hiện nay. Theo đó, các nhà hoạch định chính sách cần neo chắc chắn được kỳ vọng lạm phát bằng cách bằng các tín hiệu rõ ràng, kiên định với cam kết đầy đủ về chống lạm phát. Đồng thời, chính sách tài khóa và tiền tệ cần được kết hợp theo hướng tài trợ đầu tư công bằng cách phát hành trái phiếu Chính phủ với lưu lượng vừa đủ để ổn định lãi suất.
    Keywords: Macroeconomics,International Integration,Quantitative Analysis,Literature Review
    Date: 2022–08
  22. By: Justin Damien Guenette (World Bank); M. Ayhan Kose (World Bank, Brookings Institution, CEPR, CAMA); Naotaka Sugawara (World Bank)
    Abstract: Global growth prospects have deteriorated significantly since the beginning of the year, raising the specter of global recession. This paper relies on insights gleaned from previous global recessions to analyze the recent evolution of economic activity and policies and presents plausible scenarios for the global economy in 2022–24. We report three major findings. First, every global recession since 1970 was preceded by a significant weakening of global growth in the previous year, as has happened recently. Second, the global economy is in the midst of one of the most internationally synchronous episodes of monetary and fiscal policy tightening of the past five decades. The policy actions in many countries are necessary to contain inflationary pressures, but their mutually compounding effects could have larger impacts than envisioned—both in tightening financial conditions and in steepening the global growth slowdown. Third, if the degree of global monetary policy tightening markets now expect is not enough to reduce inflation to targets, experience from previous global recessions suggests that the additional tightening needed could cause significant financial stress and increase the likelihood of a global recession next year. These findings imply that policymakers need to carefully calibrate, clearly communicate, and credibly implement their policy actions while considering potential international spillovers, especially given the globally synchronous withdrawal of monetary and fiscal policies. They also need to pursue supply-side measures to overcome constraints confronting labor markets, energy markets, and trade networks.
    Keywords: Global economy; growth scenarios; monetary policy; fiscal policy; global inflation; synchronization of policies.
    JEL: E17 E32 E37 E58 F44 G01
    Date: 2022–09
  23. By: Samuel Demeulemeester (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The 2007-2008 Global Financial Crisis has brought renewed interest in the 100% Money reform idea of the 1930s', the essence of which was to require 100% reserves on transaction deposits so as separate money issuance from bank loans. A modern version of this idea, the Sovereign Money proposal, has been much discussed in recent years. Some heterodox economists have harshly criticized Sovereign Money advocates for lacking a clear analytical framework, as well as for disregarding "established" literature on such topics as the causality relationship between money and prices, the accommodation of business needs, financial instability, or the seigniorage privilege. The literature on 100% Money, however, appears to have been largely overlooked by both sides of the debate-even though, as this article shows, it could have brought valuable theoretical insight to the discussion. Building upon the arguments of the 100% Money writers, this paper concludes that many of the criticisms addressed to the Sovereign Money proposal are either inconclusive or misplaced.
    Keywords: 100% money,Sovereign Money,full reserve banking,endogenous money,financial instability B26,E30,E42
    Date: 2022–08–15
  24. By: Marie Daumal (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis)
    Abstract: En octobre 2008, le système financier des Etats-Unis d'Amérique se trouvait au bord de l'effondrement. De grandes banques auraient fait faillite sans l'aide financière massive du gouvernement américain. La littérature économique, composée de rapports officiels, de livres et d'articles académiques, a tenté d'identifier les causes de la crise financière de 2008 : une déréglementation inappropriée du système financier et bancaire, une supervision faible du système de la part des régulateurs, une prise de risque excessive des banques conjuguée à un effet de levier trop élevé, des inégalités croissantes aux Etats-Unis, etc. Notre travail est composé de deux parties. Dans la première, nous avons réalisé une synthèse sur les causes économiques de la crise de 2008 en nous basant sur le rapport d'enquête des autorités fédérales américaines -intitulé "Report of the Financial Crisis Inquiry Commission"-, sur les documents publiés par le Fonds Monétaire International après 2008 ainsi que sur le livre du Prix Nobel d'économie, M. Joseph Stiglitz. La seconde partie aborde les causes politiques de la crise. L'idéologie dominante « pro-marché », les financements de campagnes électorales par le secteur financier privé, les activités de lobbying ainsi que les allers-retours professionnels des politiques entre Wall Street et Washington pourraient expliquer en grande partie la déréglementation inappropriée du système financier américain intervenue entre les années 1980 et 2008, ayant conduit à cette crise.
    Date: 2022–08–24

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