Journal Article

Solving the present crisis and managing the leverage cycle

Abstract: Yale University professor John Geanakoplos discusses implications of ?the leverage cycle??a phenomenon in which leverage is excessive prior to a financial crisis and unacceptably low during the crisis?for regulatory policy and reform. Presented as the keynote address at \\"Central Bank Liquidity Tools and Perspectives on Regulatory Reform\\" a conference sponsored by the Federal Reserve Bank of New York, February 19-20, 2009.

Keywords: Financial market regulatory reform; Investments; Swaps (Finance); Default (Finance); Uncertainty; Financial crises; Federal Reserve System; Equilibrium (Economics); Housing - Prices; Assets (Accounting);

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Economic Policy Review

Publication Date: 2010

Volume: 16

Issue: Aug

Pages: 101-131