vrijdag 13 november 2009
Improving Resolution Options for Systemically Relevant Financial Institutions
There are critical holes in the existing regulatory framework for handling large complex financial institutions that become impaired. This uncertainty makes it difficult for regulators to know the best way to restructure a financial institution or, indeed, whether restructuring is even feasible without enormous disruption. This Working Paper, the seventh in the Squam Lake Working Group series distributed by the Center for Geoeconomic Studies, endorses legislation that would give authorities the necessary powers to effect an orderly resolution of large complex financial institutions. As part of this authority, every such institution should be required to create its own rapid resolution plans, which would be subject to periodic regulatory scrutiny. These “living wills” would help authorities address the difficulties that might arise in a resolution. Read the complete article here.
Preventing the Next Financial Crisis
U.S. monetary and fiscal policy is currently on a course toward creating another financial crisis. History shows that without changing course, countries with high actual and expected money growth, unsustainable budget deficits, and a currency expected to depreciate wind up in a crisis. The United States should commit to reducing future inflation and lowering future budget deficits to avoid a crisis and ultimately increase economic well-being. Read the complete AEI article here.
Economic theory and the financial crisis - An interview with Eric Mashkin
Read the complete interview in The Browser here.
Is Posner Right? An Empirical Test of the Posner Argument for Transferring Health Spending from Old Women to Old Men
Posner (1995) proposes the redistribution of health spending from old women to old men to
equalize life expectancy. His argument is based on the assumption that women’s utility is
higher if they are married. Thus, extending the lifespan of men would benefit women. Using
life satisfaction data from the German Socio-Economic Panel Study (SOEP), we conduct an
empirical test of this assumption. We apply a two-step estimation strategy: first, we use a
propensity score matching approach to generate a control group of non-widowed women.
The average level of life satisfaction in the control group serves as a reference to measure
the degree of adaptation to widowhood. In the second step, the life satisfaction trajectories of
both groups are estimated using penalized spline regressions. The results suggest
bereavement has no enduring effect on life satisfaction, and that falsifies Posner’s
assumption. Read the complete publication here.
equalize life expectancy. His argument is based on the assumption that women’s utility is
higher if they are married. Thus, extending the lifespan of men would benefit women. Using
life satisfaction data from the German Socio-Economic Panel Study (SOEP), we conduct an
empirical test of this assumption. We apply a two-step estimation strategy: first, we use a
propensity score matching approach to generate a control group of non-widowed women.
The average level of life satisfaction in the control group serves as a reference to measure
the degree of adaptation to widowhood. In the second step, the life satisfaction trajectories of
both groups are estimated using penalized spline regressions. The results suggest
bereavement has no enduring effect on life satisfaction, and that falsifies Posner’s
assumption. Read the complete publication here.
Disillusioned with Europe, Turkey Looks East
As European opposition to EU membership for Turkey grows, Ankara is looking to forge closer ties to its neighbors. Turkey wants to once again become a leading power in the Middle East -- but its relationship with Israel may suffer as a result. Read the complete article in Der Spiegel International here.
Geert Wilders' One-Man Crusade against Islam
Geert Wilders wants to ban the Koran, impose a tax on headscarves and calculate the cost of immigration. The Dutch right-wing populist also plans to run for prime minister in 2011 -- and his party is currently leading in the polls. Read the complete article in Der Spiegel International Edition here.
Single market bargaining
Why a deal on tax harmonisation might not boost support for the single market. Read the Charlemagne column in The Economist here.
Health-care reform: Passing the baton
One step forward for health reform. But even if they reach the finishing line, the Democrats face trouble in next year’s mid-terms. Read the complete article in The Economist here.
Pour une école de la confiance
L'avant-projet de décret est une étape positive dans la reconstruction d’une école de la confiance. Eléments de réflexion sur une plateforme durable pour la réussite scolaire. Lisez la carte blanche dans La Libre Belgique ici.
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