Description
Book SynopsisTrade Review"[
Leveraged] is well worth reading." * Society of Professional Economists *
"[
Leveraged] explore[s] the causes and costs of financial instability, explaining why this fragility is endemic to modern economies." * Journal of Economic Literature *
“
Leveraged brings together the leading scholars working on the stunning rise in debt over the last forty years. The chapters offer compelling insight into the challenges to the world economy from a growing dependence on debt financing, and they also provide guidelines on what we are to do about it. The growth in debt requires that we revisit fundamental questions about the role of the financial sector, and this book makes great progress on these questions.” -- Amir Sufi | author of "House of Debt" | University of Chicago
Table of ContentsIntroduction: The New Economics of Debt and Financial Fragility
Moritz Schularick
Part 1 Finance Unbound: The Rise of Finance and the Economy
1 How to Think about Finance
Atif Mian
Comment by Karen Dynan
2 Reconsidering the Costs and Benefits of Debt Booms for the Economy
Emil Verner
Comment by Holger Mueller
Part 2 Risk-Taking: Incentives, Investors, Institutions
3 Are Bank CEOs to Blame?
Rüdiger Fahlenbrach
Comment by Samuel G. Hanson
4 A New Narrative of Investors, Subprime Lending, and the 2008 Crisis
Stefania Albanesi
Comment by Fernando Ferreira
5 Bank Capital before and after Financial Crises
Òscar Jordà, Björn Richter, Moritz Schularick, and Alan M. Taylor
Comment by Anna Kovner
Part 3 Mispricing Risks: Credit Booms and Risk Premia
6 Beliefs and Risk-Taking
Alessia De Stefani and Kaspar Zimmermann
Comment by Yueran Ma
7 A New Approach to Measuring Banks’ Risk Exposure
Juliane Begenau
Comment by Nina Boyarchenko
8 Is Risk Mispriced in Credit Booms?
Tyler Muir
Part 4 Financial Crises: Reconsidering the Origins and Consequences
9 Historical Banking Crises: A New Database and a Reassessment of Their Incidence and Severity
Matthew Baron and Daniel Dieckelmann
Comment by Mark Carlson
10 Was the U.S. Great Depression a Credit Boom Gone Wrong?
Natacha Postel-Vinay
Comment by Eugene N. White
11 Sectoral Credit Booms and Financial Stability
Karsten Müller
Comment by Orsola Costantini
Index
