Generate QR code
Open Access
Subscription Access
Economics of banks and financial markets (Nobel Memorial Prize in Economic Sciences 2022)
https://doi.org/10.32609/0042-8736-2023-2-5-17
Abstract
The article provides a brief introduction to the research on banks and finan- cial crises, for which the 2022 Nobel prize in economic sciences was awarded. Forty years ago, the works of Diamond and Dybvig highlighted the critical role banks play in maturity transformation and explained why this role makes banking crises a natural byproduct, thus providing a theoretical basis for modern banking regulation. The concurrent work by Bernanke on the Great Depression, the worst peace-time economic crisis in mature market economies, demonstrated that banks’ closures were a critical factor in making the depression so deep and prolonged.
Keywords
banking sector,
financial crisis,
banking regulation, maturity transformation,
Nobel Memorial Prize in Economic Sciences
JEL: E58, G21, G28
References
1. Izmalkov S., Sonin K. (2017). Basics of contract theory (Nobel Memorial Prize in Economic Sciences 2016 — Oliver Hart and Bengt Holmström). Voprosy Ekonomiki, No. 1, pp. 5—21. (In Russian).] https://doi.org/10.32609/0042-8736-2017-1-5-21
2. Kuzminov Y., Yudkevich M. (2010). Beyond market: Institutions of governance in the complex world (Nobel Memorial Prize in Economics 2009 — Oliver Williamson and Elinor Ostrom). Voprosy Ekonomiki, No. 1, pp. 82—98. (In Russian).] https://doi.org/10.32609/0042-8736-2010-1-82-98
3. Allen F., Gale D. (1997). Financial markets, intermediaries, and intertemporal smoothing. Journal of Political Economy, Vol. 105, No. 3, pp. 523—546. https://doi.org/10.1086/262081
4. Almeida H. (2012). Corporate debt maturity and the real effects of the 2007 credit crisis. Critical Finance Review, Vol. 1, No. 1, pp. 3—58. https://doi.org/10.1561/104.00000001 нет ссылки!
5. Bernanke B. S. (1983). Nonmonetary effects of the financial crisis in the propagation of the Great Depression. American Economic Review, Vol. 73, No. 3, pp. 257—276. Bernanke B. S. (1995). The macroeconomics of the Great Depression: A comparative approach. Journal of Money, Credit and Banking, Vol. 27, No. 1, pp. 1—28. https://doi.org/10.2307/2077848 нет ссылки!
6. Bernanke B. S. (2018). The real effects of disrupted credit: Evidence from the global financial crisis. Brookings Papers on Economic Activity, Vol. 2018, No. 2, pp. 251—322. https://doi.org/10.1353/eca.2018.0012
7. Bernanke B. S., Gertler M. (1989). Agency costs, net worth, and business fluctuations. American Economic Review, Vol. 79, No. 1, pp. 14—31.
8. Calomiris C. W., Kahn G. (1991). The role of demandable debt in structuring optimal banking arrangements. American Economic Review, Vol. 81, No. 3, pp. 497—513. Calomiris C. W., Mason J. R. (2003). Consequences of bank distress during the Great Depression. American Economic Review, Vol. 93, No. 3, pp. 937—947. https://doi.org/10.1257/000282803322157188
9. Chodorow-Reich G. (2014). The employment effects of credit market disruptions: Firm-level evidence from the 2008—2009 financial crisis. Quarterly Journal of Economics, Vol. 129, No. 1, pp. 1—59. https://doi.org/10.1093/qje/qjt031
10. Cohen J., Hachem K., Richardson G. (2021). Relationship lending and the Great Depression. Review of Economics and Statistics, Vol. 103, No. 3, pp. 505—520. https://doi.org/10.1162/rest_a_00899
11. Diamond D. W. (1984). Financial intermediation and delegated monitoring. Review of Economic Studies, Vol. 51, No. 3, pp. 393—414. https://doi.org/10.2307/2297430 Diamond D. W., Dybvig P. H. (1983). Bank runs, deposit insurance, and liquidity. Journal of Political Economy, Vol. 91, No. 3, pp. 401—419. https://doi.org/10.1086/261155
12. Diamond D. W., Rajan R. G. (2001). Liquidity risk liquidity creation and financial fragility: A theory of banking. Journal of Political Economy, Vol. 109, No. 2, pp. 287—327. https://doi.org/10.1086/319552
13. Duchin R., Ozbas O., Sensoy B. A. (2010). Costly external finance, corporate investment, and the subprime mortgage credit crisis. Journal of Financial Economics, Vol. 97, No. 3, pp. 418—435. https://doi.org/10.1016/j.jfineco.2009.12.008
14. Friedman M. (1948). A monetary and fiscal framework for economic stability. American Economic Review, Vol. 38, pp. 245—264.
15. Friedman M., Schwartz A. J. (1963). Monetary history of the United States, 1867–1960. Princeton: Princeton University Press.
16. Jacklin C. (1987). Demand deposits, trading restrictions, and risk-sharing. In: E. Prescott, N. Wallace (eds.). Contractural arrangements for intertemporal trade. Minneapolis, MN: University of Minnesota Press, pp. 26—47.
17. Karas A., Pyle W., Schoors K. (2013). Deposit insurance, banking crises, and market discipline: Evidence from a natural experiment on deposit flows and rates. Journal of Money, Credit and Banking, Vol. 45, pp. 179—200. https://doi.org/10.1111/j.1538-4616.2012.00566.x
18. Kiyotaki N., Moore J. (1997). Credit cycles. Journal of Political Economy, Vol. 105, No. 2, pp. 211—248. https://doi.org/10.1086/262072
19. Kornai J. (1992). The socialist system: The political economy of communism. Princeton, NJ: Princeton University Press.
20. Kornai J., Maskin E., Roland G. (2003). Understanding the soft budget constraint. Journal of Economic Literature, Vol. 41, No. 4, pp. 1095—1136. https://doi.org/10.1257/jel.41.4.1095
21. Modigliani F., Miller M. H. (1958). The cost of capital, corporation finance and the theory of investment. American Economic Review, Vol. 48, No. 3, pp. 261—297. Morris S., Shin H. S. (2000). Rethinking multiple equilibria in macroeconomic modeling. NBER Macroeconomics Annual, Vol. 15, pp. 139—161. https://doi.org/10.1086/654411
22. Puri M., Rocholl J., Steffen S. (2011). Global retail lending in the aftermath of the US financial crisis: Distinguishing between supply and demand effects. Journal of Financial Economics, Vol. 100, No. 3, pp. 556—578. https://doi.org/10.1016/j.jfineco.2010.12.001
23. Rochet J., Vives X. (2004). Coordination failures and the lender of last resort: Was Bagehot right after all?. Journal of the European Economic Association, Vol. 2, No. 6, pp. 1116–1147. https://doi.org/10.1162/1542476042813850
24. Schoors K., Sonin K. (2005). Passive creditors. International Finance, Vol. 8, No. 1, pp. 57—86. https://doi.org/10.1111/j.1367-0271.2005.00151.x
Review
For citations:
Sonin K.I. Economics of banks and financial markets (Nobel Memorial Prize in Economic Sciences 2022). Voprosy Ekonomiki. 2023;(2):5-17. (In Russ.) https://doi.org/10.32609/0042-8736-2023-2-5-17
Views:
1612
Email this article 
