The Failure of Financial Macroeconomics and What to Do about It
Jean-Bernard Chatelain
(1, 2)
,
Kirsten Ralf
(3)
Jean-Bernard Chatelain
- Fonction : Auteur
- PersonId : 8315
- IdHAL : jean-bernard-chatelain
- ORCID : 0000-0001-7768-9369
- IdRef : 137447256
Résumé
The bargaining power of international banks is currently still very high as compared with what it was at the time of the Bretton Woods conference. As a consequence, systemic financial crises are likely to remain recurrent phenomena with large effects on macroeconomic aggregates. Mainstream macroeconomic models dealing with financial frictions failed to explain at least eight stylized facts of the ongoing crisis. We therefore suggest two complementary assumptions: (i) a systemic bankruptcy risk stable equilibrium may be feasible, and (ii) inefficient financial markets rarely ensure that the price of an asset is equal to its 'fundamental long-term value'.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
The Failure of Financial Macroeconomics and What to Do about It
|
Résumé |
en
The bargaining power of international banks is currently still very high as compared with what it was at the time of the Bretton Woods conference. As a consequence, systemic financial crises are likely to remain recurrent phenomena with large effects on macroeconomic aggregates. Mainstream macroeconomic models dealing with financial frictions failed to explain at least eight stylized facts of the ongoing crisis. We therefore suggest two complementary assumptions: (i) a systemic bankruptcy risk stable equilibrium may be feasible, and (ii) inefficient financial markets rarely ensure that the price of an asset is equal to its 'fundamental long-term value'.
|
Auteur(s) |
Jean-Bernard Chatelain
1, 2
, Kirsten Ralf
3
1
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
Ecole Supérieure du Commerce Extérieur - ESCE
( 185640 )
- 10 rue Sextiius Michel, 75015 Paris
- France
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Page/Identifiant |
21-53
|
Volume |
Supplement S1
|
Nom de la revue |
|
Date de production/écriture |
2012
|
Audience |
Internationale
|
Date de publication |
2012
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Mots-clés |
en
macroeconomics, finance crisis
|
DOI | 10.1111/j.1467-9957.2012.02327.x |
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