The financial crisis has been going on long enough now that we are starting to see a lot of serious research and policy papers addressing the various issues that the crisis has raised.
This material may be a bit more complicated than most of the reports this blog usually links to but I think some of our readers may appreciate getting a sense of the stuff that we’re reading in trying to understand what’s going on and where we should be heading.
So, here’s some stuff I’ve been reading in between my nationalisation blogging …
- Via Paul Krugman, here’s the six-month congressional oversight report for TARP (oh that NAMA would ever receive such oversight!) Beyond the detailed discussion of the various US government initiatives, the report contains a valuable discussion of historical approaches to banking crises (including the often mis-interpreted Swedish bad bank scheme) and current European approaches. The report even devotes two pages to Ireland.
- Via Greg Mankiw, two papers from this weekend’s NBER Macro Annual conference struck me as particularly interesting. This one on “The Credit Ratings Crisis” (Personally, I’m in favour of setting up an international ratings agency, run out of the BIS, such that risk-weighted capital calculations would be done by a fully independent agency — but more on that some other time). Then there’s this paper on foreclosures from the Boston Fed. See also this excellent summary of the paper from the unrivalled source of free ice-cream that is Calculated Risk.
- Amid the damp squib that was the G20 meeting, I didn’t see any discussion of these three reports released simultaneously by the Financial Stability Forum (an intergovernmental body of central bankers and treasury officials — now apparently re-named the far more catchy Financial Stability Board) on addressing procyclicality in the financial system, on compensation practices, and on international co-operation on financial crises. The reports contain lots of interesting material.