Books by Ana Fostel and John Geanakoplos
Leverage Cycles and the Anxious Economy (American Economic Review, Vol. 98, No. 4, September 2008)
by Ana Fostel and John Geanakoplos
Just as there’s a business cycle with booms and recessions, so there is a leverage cycle. And the two are intimately connected. This paper gives an explanation for how a relatively small piece of bad news can give rise to a big deterioration – in liquidity, lending, and production. The government then has to step in, but, according to this paper, it can also act beforehand to limit crises by constraining leverage.
Interviews where books by Ana Fostel and John Geanakoplos were recommended
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1
Bank Runs, Deposit Insurance and Liquidity (Journal of Political Economy, Vol. 91, No. 3, June 1983)
by Douglas Diamond and Philip Dybvig -
2
Private and Public Supply of Liquidity (Journal of Political Economy, Vol. 106, No. 1, February 1998)
by Bengt Holmstrom and Jean Tirole -
3
The Prudential Regulation of Banks
by Mathias Dewatripont and Jean Tirole -
4
Credit Cycles (Journal of Political Economy, Vol. 105, No. 2, April 1997)
by Nobuhiro Kiyotaki and John Moore -
5
Leverage Cycles and the Anxious Economy (American Economic Review, Vol. 98, No. 4, September 2008)
by Ana Fostel and John Geanakoplos
Economic Theory and the Financial Crisis: A Reading List, recommended by Eric Maskin
Economic Theory and the Financial Crisis: A Reading List, recommended by Eric Maskin
The 2007 Nobel Economics Prize winner says that, contrary to popular perception, economic theory did a good job of predicting the financial crisis, it’s just that no one was paying any attention. Eric Maskin talks us through four journal articles and one book on ‘economic theory and the financial crisis.’
