Articles

The storm that rocked the world economy in 2008 involved many forces, hitting financial, housing and broader sectors of the economy all at once. As the world continues to reform and reflect on the lessons of that crisis, we note the broad consensus that has emerged among economists about what happened. In a recent survey […] 

Anil Kashyap offers his summary of how the Greek crisis started and has evolved. Read summary 

The Federal Reserve last week announced its new “Enhanced Prudential Standards and Early Remediation Requirements” for big banks, as required by the Dodd-Frank law. You have to pity the poor Fed because it faces an impossible task. The Fed’s proposal opens with an eloquent ode to the evils of too-big-to-fail and moral hazard. And then […] 

Freakonomics Blog November 30, 2011 Professors Christian Leuz, Anil Kashyap, and Randall Kroszner participated in a Freakanomics Quorum, in which they offered their thoughts on the following questions: “In light of the recent European debt crisis, what do you think will happen to the euro? In your opinion, what should happen to the euro?” Read […] 

The European debt discussions always paint the alternatives as either bail out countries (really, bail out their bondholders) or break up the euro. In fact, the euro and the European economic union would be stronger if countries can default. For that reason, I advocated letting Greece go a year and a half ago when the […] 

Luigi Zingales, speaking with Tom Keene of Bloomberg Television’s “Surveillance Midday” on August 12th, 2011, discussed the U.S. and European sovereign debt, financial market volatility, and the U.S. housing market. Watch video> 

by Darrell Duffie and Anil Kashyap The possibility of a US government default or credit rating downgrade has everyone asking what either would mean. One source of concern is the potential impact on the use of treasury securities as collateral. The market where this matters most is the “repo market”. Darrell Duffie and Anil Kashyap […] 

Anil K Kashyap and Francesco Giavazzi With Italy now paying the same rates as Spain to finance its debt, the European crisis has reached a critical stage. To prevent the possible demise of the single currency, the European Union now must come up with a credible plan to address the future of the euro area. […] 

Greek debt is in trouble—again. After a month of dickering, it seems likely that the International Monetary Fund and the European Union will agree to roll over Greece’s debt so bondholders will be paid in full. Why is Europe so terrified of letting bondholders bear some of the risk that comes with high yields? Read […] 

Raghuram Rajan discusses the global financial crisis and his new book — Fault Lines: How Hidden Fractures Still Threaten the World Economy — on the Bloomberg on the Economy program. Listen now Part 1 and Part 2