The Credit Suisse crisis demonstrated that foreign currency funding vulnerabilities remain material even in advanced, well-regulated financial systems.
cepr.org/voxeu/columns/…
Great Crashes & Great Economists by @lindayueh
@GreatBookSeries
#GreatCrashes: Lessons from Global Meltdowns & How to Prevent Them, FT’s The Best New Economics Books; #GreatEconomists, A Times’ Best Business Book of the Year
Joined March 2018
- If runs are main cause of bank distress, deposit insurance & central bank emergency lending may suffice to prevent costly failures eg Silicon Valley Bank. If insolvency is problem, emphasis must shift toward bank capital, supervision, and risk management
- "The difficulty of international trade lies not in the exchange of goods but in the exchange of currencies." John Maynard Keynes (1944) - Bretton Woods Conference.
- ‘Creative destruction’ was first coined in the 1940s by the Austrian #greateconomist Joseph Schumpeter. Economic progress carries with it significant disruption: every major innovation since the industrial age has displaced older technologies, jobs, firms.
- More in The Great Crashes: Lessons from Global Meltdowns and How To Prevent them amazon.co.uk/Great-Crashes-…The stock market has seen an extended bull market since 2009, with the S&P 500 up 63% this decade despite the damaging Covid shock. The primary driver of stock prices today is investment in artificial intelligence (AI). cepr.org/voxeu/columns/…
