How could we make the banking sector easy to fix

Assignment Help Econometrics
Reference no: EM131017931

1. Using only the executive summary, what does Kling think caused the Financial Crisis of 2008? (Use only one sentence.)

2. One page 5, what is "the fact?" and what does this "fact" mean to you?

3. Briefly summarize the four components of the Financial Crisis?

5. On page 10, Kling states, "These property bubbles (in the U.K. and Spain) cannot be blamed on U.S. policy." How confident are you on that point? Is Kling wrong?

6. Kling's matrix of causes, gives almost all weight to what two factors? What three factors are almost completely not responsible?

7. Many have blamed designer financial (my term) like CDS and CDO and the shadow banking system for the collapse. How do these fit into Kling's narrative?

8. Outline the progression of policy that caused/responded to economic conditions in the 30s, 70s and 80s and 00s.

9. What role did the mortgage interest deduction have on housing market?

10. What institution invented and allowed the expansion of mortgage-backed securities?

11. What is regulatory arbitrage?

12. Why did the Basel agreement create an advantage for mortgage securitization?

13. Did the Federal Reserve (and presumably other regulatory agencies know and even encourage regulatory capital arbitrage? What author does Kling cite to establish this?

14. What did the 2002 modification of the Basel Rules do to capital requirements? (See figure 4)

15. Summarize the Shadow Regulatory Committee's statement 160.

16. Did non market institutions, such as the IMF and Bernanke, think, in 2006, that financial innovation had make the banking sector more or less fragile?

17. What is time inconsistency? (You can look this up elsewhere.)

18. How might "barriers to entry" by related to "safety and soundness?"

20. How did credit scoring and credit default swaps enlarge the mortgage securities market?

21. Why, up until 2007, did we think that monetary expansion was all that was needed to mitigate the impact of financial crises?

22. Suppose that financial markets are inherently unstable. What does this mean are two goals of regulation and regulators?

23. Why are type two errors so problematic? (Two reasons.)

24. How could we make the banking sector easy to fix?

Reference no: EM131017931

Questions Cloud

What is the slope of tims budget constraint : Describe how Lewis should spend his $10 on Pepsi and Chicken Wings in order to maximize his total utility. How many Pepsi and Chicken Wings would Lewis buy?
What do we mean by industry concentration : Class, what are some other important barriers to entry? What are more examples of oligopolies? What do we mean by industry concentration?
What is the equilibrium relative price of apples : Graph the relative demand curve along with the relative supply curve. What is the equilibrium relative price of apples? How many apples and how many bananas will each country produce at the equilibrium?
Find the total revenue of the farmers : Find the equilibrium - To reduce the sale of cigarettes to 10 million packs, how large will the excise tax need to be - Find the Total Revenue of the farmers.
How could we make the banking sector easy to fix : Why, up until 2007, did we think that monetary expansion was all that was needed to mitigate the impact of financial crises?
Calculate the percentage of businesses willing to use : So we went to Reference USA to get the total businesses in every city then use the percentage that businesses said yes in the survey and calculate the percentage of businesses willing to use mural as a marketing tool.
Evaluate the current policies outlined in the position : Evaluate the current policies outlined in the Position Statement on page 5 of the article Use the SOT Guiding Principles in the Use of Animals in Toxicology to guide you in your analysis. Feel free to use additional information and avenues of informa..
What are the market equilibrium price and quantity : What are the market equilibrium price and quantity - What price do farmers need to charge in order to sell all of the milk they are supplying?
A nonfermenter and a fermenter : How do you differentiate between a nonfermenter and a fermenter

Reviews

Write a Review

Econometrics Questions & Answers

  Why does fed tend to focus on the measurement of inflation

The Federal Reserve sees worse economic problems ahead . But even so, the Fed may be reluctant to cut interest rates any further than it already has . The Fed lowered its economic growth forecast for the year. At the same time, it reaised its pro..

  Will the firm realize an economic profit or incur loss

If the product price is $75 at its optimal output, will the firm realize an economic profit, break even, or incur an economic loss. How much will the profit or loss be. If the product price is $45 at its optimal output, will the firm realize an ec..

  Measure the marginal utility per dollar

Let MUA = z = 10 ? x and MUB = z = 21 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B-that is, x + y = 1..

  Which person has comparative advantage in chicken

Suppose that they are thinking of each specializing completely in the area in which they have a comparative advantage, and then trading at a rate of 2.5 pounds of potatoes for 1 chicken, would they each be better off

  Calculate number of workers to be laid off and divide loss

The firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm's output is $25. The cost of other variable inputs is $400,000 per day.

  How many cows would it take to fuel by a fleet of cars

A group of enterprising engineering students has developed a process for extracting combustible methane gas from cow manure (don't worry the exhaust is odorless). With a specially adapted internal combustion engine, the students claim that an auto..

  Did the labor productivity ratio increase or decrease

The ABC Company has a large order for special uniforms to be used in an urgent operation. Working the normal two shifts of 40 hours each per week, the ABC production process usually produces 2, 500 uniforms per week at a standard cost of $120 each..

  Determine how many units of x will zcorp buy

Q = 500X - 2X2 where X is the only variable input used by ZCorp to product its product, Q. Because ZCorp sells its product in a perfectly competitive market, it can sell all the Q it produces for $25. The current market price for input X is $100. ..

  Need an php script that redirect the visitor to url or dir

need an php script that redirect the visitor to url or dir based on their ip address if the visitor from germany then

  How should the x be divided to maximize welfare

Assume there is one good in the economy X, and utility is given by: Ua=Xa Ub=Xb The objective is to maximize the welfare of the social given that only 10 units of X exist in the economy. (i.e Xa+Xb=10) Suppose the utilitarian social welfare functi..

  What is the minimum total payment the community will accept

Suppose the community has the right to clean water. The factoryowner wants to increase the level of pollution from the current 10gallons per day to the optimal level. What is the maximum totalpayment that the factory will be willing to offer

  A construction company is considering procuring one of two

a construction company is considering procuring one of two types of heavy construction equipment a and b. each type of

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd