Table of Contents
Preface v
Acknowledgments vii
I Special Addresses 1
The International Financial Crisis: Asset Price Exuberance and Macroprudential Regulation Charles L. Evans 3
Back from the Brink Christina D. Romer 15
Getting the New Regulatory Framework Just Right: Six Questions for Policymakers José Viñals 31
Longer Days, Fewer Weekends Kevin M. Warsh 39
Banking Regulation: Changing the Rules of the Game Philipp M. Hildebrand 47
II What Broke? The Root Causes of the Crisis 57
The Causes of the Financial Crisis and the Impact of Raising Capital Requirements Martin Neil Baily Douglas J. Elliott 59
Origins of the Subprime Crisis Charles W. Calomiris 73
The Role of the Financial Sector in the Great Recession Michael Mussa 93
What Broke? The Root Causes of the Crisis Edwin M. Truman 117
III Containing a Systemic Crisis: Is There Really No Playbook? 125
Regulating Systemic Risk Masahiro Kawai Michael Pomerleano 127
Dealing with the Crises in a Globalized World: Challenges and Solutions Vincent R. Reinhart 155
Systemic Risk: Is There a Playbook? Robert K. Steel 161
IV Dealing with the Crisis: The Role of the State 167
Banking on the State Piergiorgio Alessandri Andrew G. Haldane 169
Liquidity Risk and Central Bank Actions During the 2007-2009 Crisis Francesco Papadia Tuomas Välimäki Suomen Pankki 197
The Role of the State in a Crisis Phillip L. Swagel 213
Comments: Panel on the Role of the State Peter J. Wallison 227
V What to Do About Bubbles: Monetary Policy and Macroprudential Regulation 235
Financial Instability and Macroeconomics: Bridging the Gulf Claudia Borio Mathias Drehmann 237
Is a Less Procyclical Financial System an Achievable Goal? Charles A. E. Goodhart 269
Bubbles? Allan H. Meltzer 289
What to Do About Bubbles: Monetary Policy and Macroprudential Regulation Marvin Goodfriend 295
VI Dealing with Crises in a Globalized World: Challenges and Solutions 303
Dealing with Crises in a Globalized World: Challenges and Solutions Athanasios Orphanides 305
Global Financial Reform: Diagnosis and Prognosis-A Network Approach Andrew L. T. Sheng 315
Dealing with Cross-Border Bank Distress: Some Specific Options for Reform Stijn Claessens 325
VII How to Make Regulators and Government More Accountable: Regulatory Governance and Agency Design 339
Making Safety-Net Managers Accountable for Safety-Net Subsidies Edward J. Kane 341
Regulatory Governance and Agency Design: An Old Topic, Made Extra Relevant by the Financial Crisis Michael Klein 359
The Sentinel: Improving the Governance of Financial Policies Ross Levine 371
Holding Regulators and Government More Accountable: Comments R. Christopher Whalen 387
VIII Policy Panel: Where Do We Go from Here? 395
Status Quo? I Hardly Think So Wayne A. Abernathy 397
Where Do We Go from Here? Anil K Kashyap 403
Suggested Financial Structure for Developing Countries Justin Yifu Lin 411
Comments on "Where Do We Go from Here?" Deborah J. Lucas 415
Where to from Here? Have the Rules of Finance Changed? John Silvia 421
Conference Agenda 425
Index 431
