| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP1854
|
| DP1854 Externalities in the Matching of Workers and Firms in Britain |
| Simon Burgess
|
| 发表日期 | 1998-04-30
|
| 出版年 | 1998
|
| 语种 | 英语
|
| 摘要 | Credit market imperfections have been blamed for the depth and persistence of the Great Depression in the US. Could similar mechanisms have played a role in ending the East Asian miracle? After a brief account of the nature of the recent crises, we use Kiyotaki and Moore?s (1997) model of highly levered credit-constrained firms to explore this question. As applied to land-holding property companies, it predicts greatly amplified responses to financial shocks ? like the ending of the land price bubble or the fall of the exchange rate. The initial fall in asset values is followed by the ?knock-on? effects of the scramble for liquidity as companies sell land to satisfy their collateral requirements ? causing land prices to fall further. This could lead to financial collapse where ? like falling dominoes ? prudent firms are brought down by imprudent firms.
Key to avoiding collapse is the nature of financial stabilization policy; in a crisis, temporary financing can prevent illiquidity becoming insolvency and launching ?lifeboats? can do the same. But the vulnerability of financial systems, like those in East Asia, to short-term foreign currency exposure suggests that preventive measures are also required. |
| 主题 | International Macroeconomics
|
| 关键词 | Asset price bubbles
Credit market imperfections
Financial crisis
Illiquidity and insolvency
|
| URL | https://cepr.org/publications/dp1854
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530996
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推荐引用方式
GB/T 7714 |
Simon Burgess. DP1854 Externalities in the Matching of Workers and Firms in Britain. 1998.
|
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