Banking Crises, Liquidity, and Credit Lines : A Macroeconomic Perspective book cover
1st Edition

Banking Crises, Liquidity, and Credit Lines
A Macroeconomic Perspective

ISBN 9781138798700
Published May 16, 2014 by Routledge
272 Pages 1 B/W Illustrations

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Book Description

The banking crisis in 2007-10 was one amongst many such crises in the past. This book provides a fresh approach to liquidity. It starts from basics and gradually builds up analysis of credit lines with few technicalities. Though the analysis is theoretical, the book provides a historical background, a macroeconomic perspective, and policy implications. An integrated view of the pre-1983 and the post-1983 literature is provided. A solution to the related problem of sudden outflow of funds from emerging economies is also suggested.

Table of Contents

1. Introduction  2. Bank Solvency and Systemic Stability  3. The Rationale for Demand Deposits (and Short-Term Funds)  4. Literature Review, and the Road Ahead  5. Near-Systemic Bank Runs, Given Flexible More-Reputed Bank  6. Systemic Bank Runs, Given Flexible Central Bank  7. Systemic Bank Runs, Given Gold Standard  8. Implications of Inelastic Supply of Desired Assets  9. Bank Runs, Portfolio Choice, and Adjustment Mechanism  10. Bank Runs, Liquidity, and Consumption Smoothing  11. Bank Runs, and the Broad Policy Framework  12. Sudden Capital Outflow, Emerging Economies, and Credit Lines  13. 100% Reserve Banking, and the Nature of Inefficiency  14. More on Banking Crisis and Liquidity  15. Theory and the Actual Experience  16. Summing Up

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Gurbachan Singh is a visiting faculty member in the Planning Unit (Department of Economics), Indian Statistical Institute (ISI), Delhi.