Clark Center Forum

Oliver Hart and Luigi Zingales National Affairs, Spring 2010 The financial crisis of 2008 had many causes. They ranged from a housing bubble to excessive speculation, and from inadequate accounting rules to reckless corporate governance. But at the heart of the meltdown were the financial industry’s distorted incentives — created in large part by decades […] 

Testimony of Anil K Kashyap in “Examining the Link Between Fed Bank Supervision and Monetary Policy” before the House Financial Services Committee, United States House of Representatives – March 17, 2010 Read testimony> 

U.S. Monetary Policy Forum; New York, New York February 26, 2010 On Friday February 26, the IGM hosted its annual “U.S. Monetary Policy Forum” conference that featured a report on Financial Conditions Indices and a panel discussion on Financial Regulatory Reform.  The Panel was moderated by David Wessel of the Wall Street Journal and featured […] 

This post makes available an autobiographical note by Gene Fama that was commissioned by the Annual Review of Financial Economics. Gene’s remarkable career and vision, to say nothing of his engaging writing style, make this short piece a must read for anyone interested in finance. However, as his colleagues, we believe his modesty led him […] 

Oliver Hart and Luigi Zingales FT.com, February 7th, 2010 In the struggle to identify how to avoid a repeat of last year’s financial crisis there is an emerging consensus among regulators, academics and practitioners that contingent convertible (Coco) bonds are the way to go. The idea is to have some debt in the capital structure […] 

Regulation Winter 2009-2010 With the benefit of a year’s hindsight, we can now look on the financial crisis and determine what was really the central problem, as well as identify what are the most important policy changes needed to avoid repeating the crisis. In my view, the usual suspects — “global imbalances” of saving or […] 

Douglas Diamond and Anil K Kashyap The New York Times, Op-ed WALL STREET is considering legal action to prevent President Obama from imposing a new tax on bailed-out financial institutions. Because the law that created the Troubled Asset Relief Program compels the government to recoup the bailout money, it’s unlikely that banks will succeed in […] 

FT.com, December 16th, 2009 The idea of imposing a tax on financial transactions, also called the Tobin tax after the economist who first proposed it, is back in vogue. It has strong political appeal, catering to demands to punish banks for the crisis they have bestowed. It satisfies the political need to do something to […] 

The Economists’ Voice Pay structures weren’t the problem, argues Steven Kaplan, who suggests that contingent equity is a better way to avoid bailouts. Read article> Please note that guest registration may be necessary to download the article. 

Anil K. Kashyap and Frederic S. Mishkin Wall Street Journal, November 9, 2009 Anil Kashyap and Frederic Mishkin discuss the Federal Reserve’s independence and the impact of  the Congressman Ron Paul’s bill (H. R. 1207).  They also explore an amendment that would mitigate the negative consequences of Congressman Paul’s bill. Read more>