Financial Crises

Edited by Franklin Allen, Professor of Finance and Economics, Business School and Director of the Brevan Howard Centre for Financial Analysis, Imperial College London, UK and Douglas Gale, Department of Economics, New York University, US

‘. . . an impressive collection of the seminal contributions to the academic literature on financial crises of the past three decades. . . I recommend this book to scholars, who will find here many of the intellectual ancestors of future papers. For policymakers and market participants the book should be required reading, as it will provide them with an overview of what the mainstream academic literature currently has to say about financial crises. Taking note of this literature will undoubtedly lead to better informed decision-making.’

• Contents:AcknowledgementsIntroductionFranklin Allen and Douglas Gale PART ICRISES IN HISTORICAL PERSPECTIVE 1. Michael Bordo, Barry Eichengreen, Daniela Klingebiel and Maria Soledad Martinez-Peria (2001), ‘Is the Crisis Problem Growing More Severe?’2. Gary Gorton (1988), ‘Banking Panics and Business Cycles’3. Charles W. Calomiris and Joseph R. Mason (2003), ‘Fundamentals, Panics, and Bank Distress During the Depression’PART II EMPIRICAL STUDIES OF CRISES 4. John H. Boyd, Sungkyu Kwak and Bruce Smith (2005), ‘The Real Output Losses Associated with Modern Banking Crises’5. Graciela L. Kaminsky and Carmen M. Reinhart (1999), ‘The Twin Crises: The Causes of Banking and Balance-of-Payments Problems’6. Graciela L. Kaminsky, Carmen M. Reinhart and Carlos A. Végh (2003), ‘The Unholy Trinity of Financial Contagion’PART III BANKING CRISES 7. John Bryant (1980), ‘A Model of Reserves, Bank Runs, and Deposit Insurance’ 8. Douglas W. Diamond and Philip H. Dybvig (1983), ‘Bank Runs, Deposit Insurance, and Liquidity’9. Charles W. Calomiris and Charles M. Kahn ([1991] 2001), ‘The Role of Demandable Debt Structuring Optimal Banking Arrangements’10. Franklin Allen and Douglas Gale (1998), ‘Optimal Financial Crises’11. Franklin Allen and Douglas Gale (2004), ‘Financial Intermediaries and Markets’12. Jean-Charles Rochet and Xavier Vives (2004), ‘Coordination Failures and the Lender of Last Resort: Was Bagehot Right after All?’13. Itay Goldstein and Ady Pauzner (2005), ‘Demand-Deposit Contracts and the Probability of Bank Runs’14. Franklin Allen and Douglas Gale (2000), ‘Bubbles and Crises’15. Douglas W. Diamond and Raghuram G. Rajan (2006), ‘Money in a Theory of Banking’PART IVCURRENCY CRISES 16. Paul Krugman (1979), ‘A Model of Balance-of-Payments Crises’17. Robert P. Flood and Peter M. Garber (1984), ‘Gold Monetization and Gold Discipline’18. Maurice Obstfeld (1996), ‘Models of Currency Crises with Self-Fulfilling Features’19. Stephen Morris and Hyun Song Shin (1998), ‘Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks’20. Roberto Chang and Andres Velasco (2001), ‘A Model of Financial Crises in Emerging Markets’PART VFINANCIAL CONTAGION 21. Franklin Allen and Douglas Gale (2000), ‘Financial Contagion’22. Laura E. Kodres and Matthew Pritsker (2002), ‘A Rational Expectations Model of Financial Contagion’Name Index