MARC Record from Library of Congress

LEADER: 02509nam a22003017a 4500
001 2007619410
003 DLC
005 20071227140727.0
007 cr |||||||||||
008 071227s2007 sz sb 000 0 eng
010 $a 2007619410
040 $aDLC$cDLC
050 00 $aHG3879
100 1 $aBorio, C. E. V.
245 10 $aChange and constancy in the financial system$h[electronic resource] :$bimplications for financial distress and policy /$cby Claudio E.V. Borio.
260 $aBasel, Switzerland :$bBank for International Settlements,$cc2007.
490 0 $aBIS working papers,$x1682-7678 ;$vno. 237
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file (viewed on Dec. 27, 2007).
500 $a"Monetary and Economic Department."
500 $a"October 2007."
530 $aAlso available in print.
520 3 $aOver the past three decades, the financial system has been going through a historical phase of major structural change. This paper traces the implications of this financial revolution for the dynamics of financial distress and for policy. It argues that, despite this revolution, some fundamental characteristics of the financial system have not changed and that these hold the key to the dynamics of financial instability. These characteristics relate to imperfect information in financial contracts, to risk perceptions and incentives, and to powerful feedback mechanisms operating both within the financial system and between that system and the macro-economy. As a result, the primary cause of financial instability has always been, and will continue to be, overextension in risk-taking and balance-sheets. The challenge is to design a policy response that is firmly anchored to the more enduring features of financial instability while at the same time tailoring it to the evolving financial system. Using an analogy with road safety, policy has so far largely focused quite effectively on improving the state of the roads and on introducing buffers. More attention, however, could usefully be devoted to the design and implementation of speed limit.
504 $aIncludes bibliographical references.
653 $aFinancial revolution ;$aFinancial instability ;$aRisk ;$aLiquidity ;$aFinancial regulation ;$aSpeed limits
710 2 $aBank for International Settlements.$bMonetary and Economic Dept.
856 42 $3Summary page with link to full-text PDF report$uhttp://www.bis.org/publ/work237.htm