Fault lines: How hidden fractures still threaten the world economy

Fault Lines: How Hidden Fractures Still Threaten the World Economy

Volumn , Issue , 2011, Pages 1-270

  Rajan, Raghuram G ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84924760141     PISSN: None     EISSN: None     Source Type: Book    
DOI: None     Document Type: Book

References (232)

1. Paul Krugman, "How Did Economists Get It So Wrong?" New York Times, September 6, 2009, www.nytimes.com/2009/09/06/magazine/06Economict .html.
2. John H. Cochrane, "How Did Paul Krugman Get It So Wrong?" University of Chicago Booth School of Business, http://faculty.chicagobooth.edu/john.cochrane/research/Papers/krugman_response.htm, accessed March 5, 2010.
3. J. Lahart, "Mr. Rajan Was Unpopular (but Prescient) at Greenspan Party," Wall Street Journal, January 2, 2009.
4. C. Reinhart and K. Rogoff, This Time Is Different: Eight Centuries of Financial Folly (Princeton, NJ: Princeton University Press, 2009).
5. M. Brunnermeier, "Deciphering the Liquidity and Credit Crunch, 2007-2008," Journal of Economic Perspectives 23, no. 1 (Winter 2009):77-100.
6. G. Gorton, "Information, Liquidity, and the (Ongoing) Panic of 2007," NBER Working Paper 14649, National Bureau of Economic Research, Cambridge, MA, 2009.
7. D. Diamond and R. Rajan, "The Credit Crisis: Conjectures about Causes and Remedies," American Economic Review 99 (2009):606-10.
8. Gillian Tett, Fool's Gold (New York: Free Press, 2009).
9. Richard Posner, A Failure of Capitalism (Cambridge, MA: Harvard University Press, 2009).
10. Andrew Ross Sorkin, Too Big to Fail (New York: Viking, 2009).
11. David Wessel, In Fed We Trust (New York: Crown Business, 2009).
12. A. Atkinson, T. Piketty, and E. Saez, "Top Incomes in the Long Run of History," NBER Working Paper 15408, National Bureau of Economic Research, Cambridge, MA, 2009.
13. J. Anderson, "Wall Street Winners Get Billion-Dollar Paydays," New York Times, April 16, 2010, www.nytimes.com/2008/04/16/business/16wall.html.
14. Stacey Schreft, Aarti Singh, and Ashley Hodgson, "Jobless Recoveries and the Wait-and-See Hypothesis," Economic Review, Federal Reserve Bank of Kansas City (4th quarter, 2005):81-99.
15. Richard Florida, The Rise of the Creative Class: And How It's Transforming Work, Leisure, Community and Everyday Life (New York: Basic Books, 2004).
16. Claudia Goldin and Lawrence Katz, The Race between Education and Technology (Cambridge, MA: Belknap Press, 2009), 231.
17. U.S. Census Bureau, "Educational Attainment in the United States:2008," www.census.gov/population/www/socdemo/education/cps2008.html, accessed March 5, 2010.
18. Brink Lindsey, "Paul Krugman's Nostalgianomics: Economic Policies, Social Norms, and Income Inequality," Cato Institute working paper, Washington, DC, 2009.
19. Goldin and Katz, The Race between Education and Technology, 52.
20. U.S. Census Bureau, "Educational Attainment: People 25 Years Old and Over, by Total Money Earnings in 2008," www.census.gov/hhes/www/cpstables/032009/perinc/new03_001.htm, accessed March 5, 2010.
21. Goldin and Katz, The Race between Education and Technology, 327.
22. T. Piketty and E. Saez, "Income Inequality in the United States, 1913-1998," NBER Working Paper 8467, National Bureau of Economic Research, Cambridge, MA, 2001.
23. Ross Douthat and Reihan Salam, Grand New Party (New York: Doubleday, 2008), 55.
24. P. Gottschalk and R. Moffitt, "The Growth of Earnings Instability in the U.S. Labor Market," Brookings Papers on Economic Activity 25, no. 2 (1994):217-72.
25. Nolan McCarthy, Keith Poole, and Howard Rosenthal, Polarized America: The Dance of Ideology and Unequal Riches (Cambridge, MA: MIT Press, 2008).
26. Lindsey, "Paul Krugman's Nostalgianomics," 10.
27. A. Alesina and E. LaFerrara, "Preferences for Redistribution in the Land of Opportunities," NBER Working Paper 8267, National Bureau of Economic Research, Cambridge, MA, 2001.
28. Alberto Alesina and Edward Glaeser, Fighting Poverty in the US and Europe:A World of Difference (Oxford: Oxford University Press, 2004), 61.
29. Alexis de Tocqueville, Democracy in America (New York: Doubleday, 1959), 53.
30. Robert J. Samuelson, "Indifferent to Inequality," Newsweek, May 7, 2001, 45.
31. What's Fair? American Beliefs about Distributive Justice (Cambridge, MA: Harvard University Press, 1981).
32. Robert Frank, Falling Behind: How Rising Inequality Harms the Middle Class (Berkeley: University of California Press, 2007).
33. Aristotle, Politics, book V, parts 1-5 (New York: Cambridge University Press, 1988).
34. Indeed, Abhijit Banerjee and Esther Duflo "Inequality and Growth: What Can the Data Say?" (NBER Working Paper 7793, National Bureau of Economic Research, Cambridge, MA, 2000).
35. R. Green and S. Wachter, "The American Mortgage Market in Historical and International Context," Journal of Economic Perspectives 19, no. 4 (2005):93-114.
36. James R. Barth, S. Trimbath, and Glenn Yago, The Savings and Loan Crisis: Lessons from a Regulatory Failure (Los Angeles: Milken Institute, 2004).
37. Bethany McLean, "Fannie Mae's Last Stand," Vanity Fair, February 2009.
38. Steven Holmes, "Fannie Mae Eases Credit to Aid Mortgage Lending," New York Times, September 30, 1999.
39. Wayne Barrett, "Andrew Cuomo and Fannie and Freddie: How the Youngest Housing and Urban Development Secretary in History Gave Birth to the Mortgage Crisis," Village Voice, August 5, 2008.
40. National Home Ownership Strategy (Washington, DC: Department of Housing and Urban Development, 1995), Chapter 4.
41. Lawrence McDonald and Patrick Robinson, A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers (New York: Crown Business, 2009).
42. Neil Bhutta, "Giving Credit Where Credit Is Due? The Community Reinvestment Act and Mortgage Lending in Lower-Income Neighborhoods," Federal Reserve Board Working Paper 2008-61, Washington, DC, 2008.
43. Peter Wallison, "Deregulation and the Financial Crisis: Another Urban Myth," American Enterprise Institute, www .aei.org/outlook/100089, October 2009.
44. George W. Bush, "America's Ownership Society: Expanding Opportunities," June 17, 2004, http://georgewbush-whitehouse.archives.gov/news/releases/2004/08/20040809-9.html.
45. George W. Bush, "Remarks by the President on Homeownership," speech at the Department of Housing and Urban Development, Washington DC, June 18, 2002.
46. Peter J. Wallison and Charles W. Calomiris, The Last Trillion Dollar Commitment:The Destruction of Fannie Mae and Freddie Mac (Washington, DC: American Enterprise Institute, September 2008).
47. Edward Pinto, "Sizing Total Exposure to Sub-Prime and Alt-A Loans in U.S. First Mortgage Market as of 6.30.08," American Enterprise Institute, www.aei.org/docLib/Pinto-Sizing-Total-Exposure.pdf, accessed March 10, 2010.
48. Edward Pinto, "High LTV, Sub-Prime and Alt-A Originations over the Period 1992-1997 and Fannie, Freddie, FHA, and VA's Role," American Enterprise Institute, www.aei.org/docLib/Pinto-High-LTV-Subprime-Alt-A.pdf, accessed March 10, 2010.
49. Atif Mian and Amir Sufi, "The Consequences of Mortgage Credit Expansion: Evidence from the U.S. Mortgage Default Crisis," Quarterly Journal of Economics 124, no. 4 (November 2009):1449-96.
50. Peter Wallison, "Barney Frank, Predatory Lender," Wall Street Journal, October 16, 2009.
51. James MacGee, "Why Didn't Canada's Housing Market Go Bust?" Federal Reserve Bank of Cleveland website, www.clevelandfed.org/research/commentary/2009/0909.cfm, December 2, 2009.
52. Nicolas P. Retsinas and Eric S. Belsky, eds., Borrowing to Live: Consumer and Mortgage Credit Revisited (Washington, DC: Brookings Institution Press, 2008), 14.
53. Tim Landvoigt, Monika Piazzesi, and Martin Schneider, "The Housing Market(s) of San Diego," presentation at Stanford University, 2009.
54. IMF World Economic Outlook (Washington, DC: International Monetary Fund, September 2004), 76.
55. Joseph Stiglitz, Free Fall (New York: Norton, 2010).
56. Seymour Lipset, Agrarian Socialism: The Cooperative Commonwealth Federation in Saskatchewan; A Study in Political Sociology (Berkeley: University of California Press, 1951).
57. Shawn Cole, "Fixing Market Failures or Fixing Elections: Agricultural Credit in India," Harvard Business School working paper, www.hbs.edu/research/pdf/09-001.pdf, 2008.
58. U.S. Census Bureau, "Homeownership Rates for the U.S. and Regions:1965 to Present," www.census.gov/hhes/www/housing/hvs/historic/index.html, accessed March 10, 2010.
59. Raghuram G. Rajan and Arvind Subramanian, "Aid and Growth: What Does the Cross-Country Evidence Really Show?" Review of Economics and Statistics 90, no. 4 (2008):643-65.
60. Angus Maddison, "Monitoring the World Economy, 1820-1992," University of Groningen, Faculty of Economics, www.ggdc.net/maddison, accessed February 2010.
61. R. E. Lucas Jr., "Why Doesn't Capital Flow from Rich to Poor Countries?" American Economic Review 80, no. 2 (May 1990):92-96.
62. Lant Pritchett, "Where Has All the Education Gone?" World Bank Economic Review 15, no. 3 (2001):367-91.
63. Albert Hirschman The Strategy of Economic Development (New Haven, CT: Yale University Press, 1958).
64. Angus Maddison, "The Economic and Social Impact of Colonial Rule in India," Chapter 3 of Class Structure and Economic Growth: India and Pakistan Since the Moghuls (New York: Norton, 1971).
65. E. Glaeser, R. La Porta, F. Lopez-de-Silanes, and A. Shleifer, "Do Institutions Cause Growth?" NBER Working Paper 10568, National Bureau of Economic Research, Cambridge, MA, 2004.
66. David S. Landes, Dynasties: Fortunes and Misfortunes of the World's Great Businesses (New York: Viking, 2006).
67. H. Parsa, J. Self, D. Njite, and T. King, "Why Restaurants Fail," Cornell Hotel and Restaurant Administration Quarterly 46, no. 3 (2005):304-22.
68. "Historical Tables: Budget of the U.S. Government-Fiscal Year 2010," Office of Management and Budget, www.whitehouse.gov/omb/budget/fy2010/assets/hist.pdf, accessed February 2010.
69. Ha-Joon Chang, Kicking Away the Ladder (London: Anthem Press, 2002), 20-21.
70. Daniel Yergin and Joseph Stanislaw, The Commanding Heights: The Battle between Governments and the Marketplace That Is Remaking the Modern World (New York:Simon and Schuster, 1998), 12.
71. Michael Reid, The Forgotten Continent: The Battle for Latin America's Soul (New Haven, CT: Yale University Press, 2007), 127.
72. Robert Wade, Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization (Princeton, NJ: Princeton University Press), 79-80.
73. Yergin and Stanislaw, The Commanding Heights, 176-77.
74. Wade, Governing the Market, 80.
75. Alice Amsden, Asia's Next Giant (New York: Oxford University Press, 1989), 143-45.
76. Mark L. Clifford, Troubled Tiger: Businessmen, Bureaucrats, and Generals in South Korea (Armonk, NY: M. E. Sharpe, 1994), 60.
77. Robert Brenner, The Economics of Global Turbulence (London: Verso, 2006).
78. Hiroko Tabuchi, "Japan Strives to Balance Growth and Stability," New York Times, September 15, 2009.
79. T. Taniguchi, Japan's Banks and the "Bubble Economy" of the Late 1980s (Princeton, NJ: Center for International Studies, Program on US-Japan Relations, 1993), 9.
80. Brenner, The Economics of Global Turbulence, 219.
81. Hiroko Tabuchi, "Once Slave to Luxury, Japan Catches Thrift Bug," New York Times, September 21, 2009.
82. Marcos Chamon and Eswar Prasad, "Why Are Savings Rates of Urban Households in China Rising?" Brookings Global Economy and Development Paper 31, Brookings Institution, Washington, DC, 2008.
83. Peter Evans Embedded Autonomy: States and Industrial Transformation (Princeton, NJ: Princeton University Press, 1995).
84. Barry Eichengreen, Globalizing Capital: A History of the International Monetary System (Princeton, NJ: Princeton University Press, 1996).
85. Martin Feldstein and Charles Horioka, "Domestic Saving and International Capital Flows," Economic Journal 90 (1980):314-29.
86. Marc Lacey, "Kenyan Parliament Unites, for More Money," New York Times, May 22, 2005, www.nytimes.com/2006/05/22/world/africa/22iht-kenya.html.
87. R. Rajan and L. Zingales, "Which Capitalism? Lessons from the East Asian Crisis," Journal of Applied Corporate Finance 11, no. 3 (1998):40-48.
88. R. Rajan and I. Tokatlidis, "Dollar Shortages and Crises," International Journal of Central Banking 1, no. 2 (September 2005):177-220.
89. D. Diamond and R. Rajan, "Banks, Short-Term Debt and Financial Crises: Theory, Policy Implications and Applications," Carnegie-Rochester Conference Series on Public Policy 54, no. 1 (June 2001):37-71.
90. Tarun Khanna and Krishna Palepu, "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups," Journal of Finance 55, no. 2 (April 2000):867-91.
91. Mark L. Clifford and Peter Engardio, Meltdown: Asia's Boom, Bust and Beyond (Paramus, NJ: Prentice-Hall, 2000), 136-38.
92. Shalendra D. Sharma, The Asian Financial Crisis: Crisis, Reform, and Recovery (Manchester, U.K.: Manchester University Press, 2003), 42.
93. International Political Economy Zone, http://ipezone.blogspot.com/2007/09/flashbackcamdessus-suharto-pic.html, accessed March 10, 2010.
94. Stacey Schreft, Aarti Singh, and Ashley Hodgson, "Jobless Recoveries and the Wait-and-See Hypothesis," Economic Review, Federal Reserve Bank of Kansas City (4th quarter, 2005):81-99.
95. R. Haskin and I. Sawhill, Creating an Opportunity Society (Washington, DC:Brookings Institution Press, 2009), 111.
96. Erica Groshen and Simon Potter, "Has Structural Change Contributed to a Jobless Recovery?" Current Issues in Economics and Finance, Federal Reserve Bank of New York, 9, no. 8 (August 2003):1-7.
97. Kathryn Koenders and Richard Rogerson, "Organizational Dynamics over the Business Cycle: A View on Jobless Recoveries," Federal Reserve Bank of St. Louis Review 87, no. 4 (July-August 2005):555-80.
98. Louis Uchitelle, "Labor Data Show Surge in Temporary Workers," New York Times, December 20, 2009.
99. Alberto Alesina and Edward Glaeser, Fighting Poverty in the US and Europe (Oxford: Oxford University Press, 2004), 45.
100. Joe Peek and Eric S. Rosengren, "Unnatural Selection: Perverse Incentives and the Misallocation of Credit in Japan," American Economic Review 95, no. 4 (September 2005):1144-66.
101. Takeo Hoshi and Anil Kashyap, Corporate Financing and Governance in Japan: The Road to the Future (Cambridge, MA: MIT Press, 2004).
102. "A Fork in the Road," Financial Times, December 11, 2009.
103. Clayton Christensen, The Innovator's Dilemma (New York: Harper Paperbacks, 2003).
104. National Science Foundation, Science and Engineering Indicators, Chapter 5, Appendix Table 5-43, National Science Foundation, www.nsf.gov/statistics/seind10/c5/c5s4.htm, accessed March 10, 2010.
105. Alesina and Glaeser, Fighting Poverty, 19.
106. Talkin' 'bout My Generation: The Economic Impact of Aging U.S. Baby Boomers, McKinsey Global Institute, Washington, DC, 2008.
107. Louis Hartz, The Liberal Tradition in America (San Diego, CA:Harvest HBJ, 1991).
108. Alesina and Glaeser, Fighting Poverty, 197.
109. Theda Skocpol, Protecting Soldiers and Mothers: The Political Origins of Social Policy in the United States (Cambridge, MA: Belknap Press, 1992), 50.
110. Raghuram Rajan and Luigi Zingales, Saving Capitalism from the Capitalists (Princeton, NJ: Princeton University Press, 2004).
111. Jacob S. Hacker and Paul Pierson, "Business Power and Social Policy: Employers and the Formation of the American Welfare State," Politics and Society 30, no. 2 (June 2002):277-325.
112. "Unemployment during the Depression," MSN Encarta, http://encarta .msn.com/media_461546193/unemployment_during_the_depression.html, accessed December 20, 2009.
113. Peter A. Swenson, "Varieties of Capitalist Interests: Power, Institutions, and the Regulatory Welfare State in the United States and Sweden," Studies in American Political Development 18 (Spring 2004):1-29.
114. John B. Taylor, "The Lack of an Empirical Rationale for a Revival of Discretionary Fiscal Policy," CES Info Forum 10, no. 2 (Summer 2009):9-13.
115. Elizabeth Drew, "Thirty Days of Barack Obama," New York Review of Books, March 26, 2009, www.nybooks.com/articles/22450.
116. Gerald Seib, "In Crisis, Opportunity for Obama," Wall Street Journal, November 21, 2008.
117. Ben Bernanke, testimony before the Senate Banking Committee, Washington, DC, September 23, 2008, http://banking.senate.gov/public/index.cfm?FuseAction=Hearings .Testimony&Hearing_ID=7a41ae9e-30b2-4d7f-8f1b-4ef2e8ae28f7&Witness_ID= c52a9dcc-1eb1-474c-a493-461c8fef9afd, accessed March 28, 2010.
118. Ben Bernanke, "Asset Price Bubbles and Monetary Policy," speech made at the New York Chapter of the National Association of Business Economists, October 15, 2002.
119. Ben Bernanke, "An Unwelcome Fall in Inflation," remarks made at the Economics Roundtable, University of California, San Diego, La Jolla, California, July 23, 2003.
120. "Lessons for Monetary Policy from Asset Price Fluctuations," Chapter 3, World Economic Outlook (Washington, DC: International Monetary Fund, October 2009).
121. John Taylor, Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis (Stanford, CA: Hoover Institution Press, 2009).
122. Alan Blinder, "Monetary Policy Today: Sixteen Questions and about Twelve Answers," in Central Banks in the 21st Century, ed. S. Fernandez de Lis and F. Restoy (Madrid: Banco de Espana, 2006), 31-72.
123. Joseph Lupton, "The Central Bank Bucket List" (JP Morgan Economic Research Note, Global Data Watch, JP Morgan, New York, September 11, 2009).
124. David Backus and Jonathan Wright, "Cracking the Conundrum," New York University Working Paper, New York, 2007.
125. Claudio Borio and Haibin Zhu, "Capital Regulation, Risk-Taking and Monetary Policy: A Missing Link in the Transmission Mechanism?" Bank of International Settlements Working Paper 268, Basel, 2009.
126. Raghuram Rajan, "Has Financial Development Increased Risk Taking?" Proceedings of the Jackson Hole Conference (Kansas City, MO: Federal Reserve Bank of Kansas City, August 2005), 313-69.
127. P. Gourinchas and H. Rey, "From World Banker to World Venture Capitalist: US External Adjustment and the Exorbitant Privilege," NBER Working Paper 11563, National Bureau of Economic Research, Cambridge, MA, 2005.
128. B. Bernanke, M. Gertler, and S. Gilchrist, "The Financial Accelerator and the Flight to Quality," Review of Economics and Statistics 78, no. 1 (February 1996):1-15.
129. G. Jimenez, S. Ongenga, J. Peydro, and J. Saurina, "Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say about the Effects of Monetary Policy on Credit Risk?" CEPR Discussion Paper No. 6514, Center for Economic Policy Research, London, 2007.
130. V. Ionnadou, S. Ongenga, and J. Peydro, "Monetary Policy, Risk Taking and Pricing: Evidence from a Quasi-Natural Experiment," paper presented at IMF Annual Research Conference, Washington, DC, November 2008.
131. Raghuram G. Rajan, "Investment Restraint, the Liquidity Glut, and Global Imbalances," remarks presented at the Conference on Global Imbalances, Bali, Indonesia, November 16, 2006.
132. A. Shleifer and R. Vishny, "The Limits of Arbitrage," Journal of Finance 52, no. 1 (1997):35-55.
133. Claudio Borio and Philip Lowe, "Asset Prices, Financial and Monetary Stability:Exploring the Nexus," BIS Working Paper 114, Bank for International Settlements, Basel, July 2002.
134. Alan Greenspan, The Age of Turbulence: Adventures in a New World (New York:Penguin Press, 2007), 176-78.
135. Alan Greenspan, "Opening Remarks," Federal Reserve Bank of Kansas City symposium, Jackson Hole, WY, August 2002.
136. Ben Bernanke, "Monetary Policy and the Housing Bubble," speech delivered at the annual meeting of the American Economic Association, January 3, 2010.
137. Marek Jarocinski and Frank Smets, "House Prices and the Stance of Monetary Policy," Federal Reserve Bank of St. Louis Review 90, no. 4 (July-August 2008):319-65.
138. Peter Hoffman, Gilles Postel-Vinay, and Jean-Laurent Rosenthal, Surviving Large Losses: Financial Crises, the Middle Class, and the Development of Capital Markets (Cambridge, MA: Belknap Press, 2007), 149-51.
139. Adam Smith, An Inquiry into the Causes of the Wealth of Nations (Chicago: University of Chicago Press, 1976), 18.
140. Dan Ariely, Emir Kamenica, and Dražen Prelec, "Man's Search for Meaning: The Case of Legos," Journal of Economic Behavior and Organization 67, no. 3 (September 2008):671-77.
141. James Chanos, "Prepared Statement: U.S. Securities and Exchange Commission Roundtable on Hedge Funds," U.S. Securities and Exchange Commission, www.sec .gov/spotlight/hedgefunds/hedge-chanos.htm, accessed March 10, 2010.
142. Jill Riepenhoff and Doug Haddox, "Risky Refinancings Deepen Financial Hole," Columbus Dispatch, June 2, 2008.
143. Allen Frankel, "The Risk of Relying on Reputational Capital: A Case Study of the 2007 Failure of New Century Financial," BIS Working Paper 294, Bank for International Settlements, Basel, 2009.
144. James R. Hagerty, Ruth Simon, Michael Corkery, and Gregory Zuckerman, "Home Stretch: At a Mortgage Lender, Rapid Rise, Faster Fall," Wall Street Journal, March 12, 2007.
145. U. Rajan, A. Seru, and V. Vig, "The Failure of Models That Predict Failure: Distance, Incentives and Defaults," University of Chicago working paper, 2009.
146. David Streitfield, "In Appraisal Shift, Lenders Gain Power and Critics," New York Times, August 19, 2009.
147. Bradley Keoun and Steven Church, "New Century, Biggest Subprime Casualty, Goes Bankrupt," Bloomberg.com, www.bloomberg.com/apps/news?pid=20601087& refer=home&sid=aXHDSbOcAChc, accessed March 10, 2010.
148. Atif Mian and Amir Sufi, "The Consequences of Mortgage Credit Expansion:Evidence from the U.S. Mortgage Default Crisis," Quarterly Journal of Economics 124, no. 4 (November 2009):1449-96.
149. Andrei Shleifer and Robert Vishny, "Unstable Banking," NBER Working Paper 14943, National Bureau of Economic Research, Cambridge, MA, 2009.
150. Peter Wallison, "Barney Frank: Predatory Lender," Wall Street Journal, October 16, 2009.
151. Joshua Coval, Jakub Jurek, and Erik Stafford, "The Economics of Structured Finance," Harvard Business School Working Paper 09-060, Cambridge, MA, 2008.
152. Tim Rayment, "The Man with the Trillion Dollar Price on His Head," Sunday Times, May 17, 2009.
153. Shareholder Report on UBS's Writedowns, UBS, Zurich, April 18, 2008.
154. Lawrence McDonald and Patrick Robinson, A Colossal Failure of Common Sense (New York: Crown Business, 2009).
155. Eric Dash and Julie Creswell, "The Rush to Riches that Undid Citigroup: Banking Giant's Management Failed to Monitor the Risks Tied to Its Deals," International Herald Tribune, November 24, 2008.
156. Andrew Ellul and Vijay Yerramilli, "Stronger Risk Controls, Lower Risk: Evidence from U.S. Bank Holding Companies," Indiana University working paper, Bloomington, 2010. Available at Social Science Research Network, http://ssrn.com/abstract=1550361.
157. Rudiger Fahlenbrach and Rene Stulz, "Bank CEO Incentives and the Credit Crisis," NBER Working Paper 15212, National Bureau of Economic Research, Cambridge, MA, July 2009.
158. Calvin Trillin, "Wall Street Smarts," New York Times, October 14, 2009.
159. Thomas Philippon and Ariell Reshef, "Wages and Human Capital in the U.S. Financial Industry:1909-2006," NBER Working Paper 14644, National Bureau of Economic Research, Cambridge, MA, 2009.
160. R. Rajan, "Why Bank Credit Policies Fluctuate: A Theory and Some Evidence," Quarterly Journal of Economics 109, no. 2 (May 1994):399-441.
161. Andrew Ross Sorkin, Too Big to Fail (New York: Viking, 2009), 145.
162. Michiyo Nakamoto and David Wighton, "Citigroup Chief Stays Bullish on Buyouts," Financial Times, July 9, 2007.
163. Gillian Tett, Fool's Gold (New York: Free Press, 2009), 144-45.
164. I. Cheng, H. Hong, and J. Scheinkman, "Yesterday's Heroes: Compensation and Creative Risk Taking," working paper, Princeton University, 2009.
165. Steve Fishman, "Burning Down His House: Is Lehman CEO Dick Fuld the True Villain in the Wall Street Collapse?" New York magazine, November 30, 2008, http://nymag .com/news/business/52603/index3.html#ixzz0XFCXEyhZ.
166. Sorkin, Too Big to Fail, 273.
167. Andrea Beltratti and Rene Stulz, "Why Did Some Banks Perform Better during the Credit Crisis? A Cross-Country Study of the Impact of Governance and Regulation," NBER Working Paper 15180, National Bureau of Economic Research, Cambridge, MA, July 2009.
168. "'No Line Responsibilities': What Robert Rubin Did for His $115 Million," Wall Street Journal, December 3, 2008, http://online.wsj.com/article/SB1228266 32081174473.html.
169. Viral V. Acharya, Thomas Cooley, Matthew Richardson, and Ingo Walter, "Manufacturing Tail Risk: A Perspective on the Financial Crisis of 2007-09," working paper, New York University Stern School of Business, 2009.
170. Caroline Baum, "Fed Should Read Its Own Memo on Rising-Rate Risk," Bloomberg .com, January 19, 2010, www.bloomberg.com/apps/news?pid=20601039&sid=aygo_Qm9sZ9I.
171. Tom Braithwaite, "Banks Face Probe over Trading in Tarp Frenzy," Financial Times, February 1, 2010.
172. Henry Paulson, On the Brink: Inside the Race to Stop the Collapse of the Global Financial System (New York: Business Plus, 2009), 293.
173. D. Diamond and R. Rajan, "Fear of Firesales and Credit Freezes," NBER Working Paper 14925, National Bureau of Economic Research, Cambridge, MA, 2009.
174. Matt Taibbi, "Inside the Great American Bubble Machine," Rolling Stone, July 2, 2009.
175. Donncha Marron, Consumer Credit in the United States: A Sociological Perspective from the 19th Century to the Present (New York: Palgrave Macmillan, 2009), 3-5.
176. Benjamin Franklin, The Way to Wealth, Wealth Reader, http://wealthreader .com/book/the_way_to_wealth/1, accessed March 10, 2010 (italics in original).
177. Robert Higgs, Crisis and Leviathan: Critical Episodes in the Growth of American Government (Oxford: Oxford University Press, 1987), 179.
178. Viral V. Acharya, Thomas Cooley, Matthew Richardson, and Ingo Walter, "Manufacturing Tail Risk: A Perspective on the Financial Crisis of 2007-09," working paper, New York University Stern School of Business, 2009.
179. Raghuram Rajan, "Bankers' Pay Is Deeply Flawed," Financial Times, January 9, 2008.
180. Dennis Berman, "Where Was Lehman's Board?" Wall Street Journal, September 15, 2008, http://blogs.wsj.com/deals/2008/09/15/where-was-lehmans-board/.
181. Squam Lake Working Group on Financial Regulation, "A New Information Structure for Financial Markets," Council on Foreign Relations, www.cfr.org/publication/18568/new_information _infrastructure_for_financial_markets.html, February 2009.
182. Andrew Ross Sorkin, Too Big to Fail (New York: Viking, 2009), 304.
183. D. Diamond and R. Rajan, "Illiquidity and Interest Rate Policy," NBER Working Paper 15197, National Bureau of Economic Research, Cambridge, MA, 2009.
184. D. Diamond and R. Rajan, "A Theory of Bank Capital," Journal of Finance 55, no. 6 (December 2000):2431-65.
185. "An Expedited Resolution Mechanism for Distressed Financial Firms: Regulatory Hybrid Securities," Council on Foreign Relations, www.cfr.org/publication/19002/expedited_resolution_mechanism_for_distressed_financial_firms .html, April 2009.
186. A. Kashyap, R. Rajan, and J. Stein, "Rethinking Capital Regulation," paper prepared for the Federal Reserve Bank of Kansas City symposium "Maintaining Stability in a Changing Financial System," Jackson Hole, WY, August 21-23, 2008.
187. Aaron Wildavsky, Searching for Safety (New Brunswick, NJ: Transaction Books, 1988).
188. Federal Reserve Bank of Kansas City, "Perspectives on the Recent Financial Market Turmoil," speech at the 2008 Institute of International Finance Membership Meeting, Rio de Janeiro, Brazil, March 5, 2008.
189. Louis D. Brandeis to Robert W. Bruere, Columbia Law Review 31 (1922):7.
190. Louis D. Brandeis, Other People's Money: And How the Bankers Use It (Washington, DC: National Home Library Foundation, 1933), 62.
191. Alberto Alesina and George-Marios Angeletos, "Corruption, Inequality and Fairness," working paper, Harvard Institute of Economic Research, Harvard University, 2005.
192. R. Rajan, "Rent Preservation and the Persistence of Underdevelopment," American Economic Journal: Macroeconomics 1, no. 1 (January 2009):178-218.
193. R. Haskin and I. Sawhill, Creating an Opportunity Society (Washington, DC: Brookings Institution Press, 2009).
194. J. Heckman and A. Krueger, Inequality in America (Cambridge, MA: MIT Press, 2005).
195. David Barker, "In Utero Programming of Chronic Disease," Clinical Science 95, no. 2 (1998):115-28.
196. David Barker, "Maternal and Fetal Origins of Coronary Heart Disease," Journal of Royal College of Physicians 28, no. 6 (1994):544-51.
197. David Barker, "The Fetal Origins of Adult Hypertension," Journal of Hypertension Supplement 10, no. 7 (1992): S39-44.
198. James Heckman, "Lessons from the Bell Curve," Journal of Political Economy 103, no. 5 (1995):1091-120.
199. Haskins and Sawhill, Creating an Opportunity Society, 134.
200. Santiago Levy, Progress against Poverty: Sustaining Mexico's Progresa-Oportunidades Program (Washington, DC: Brookings Institution Press, 2006).
201. James S. Coleman, Educational Equality of Opportunity, U.S. Department of Health, Education, and Welfare, 1966.
202. James Heckman, "Schools, Skills, and Synapses," NBER Working Paper 14064, National Bureau of Economic Research, Cambridge, MA, 2008.
203. Heckman and Krueger, Inequality in America, 95.
204. S. Bowles and H. Gintis, Schooling in Capitalist America (New York: Basic Books, 1976).
205. J. Coleman and T. Hoffer, Public and Private High Schools (New York: Basic Books, 1983).
206. Haskin and Sawhill, Creating an Opportunity Society, 144-45.
207. Barack Obama, speech at Democratic National Convention, quoted in Washington Post, July 27, 2004, www.washingtonpost.com/wp-dyn/articles/A19751-2004Jul27.html.
208. Anthony Bryk, Penny Bender Sebring, Elaine Allensworth, Stuart Luppescu, and John Easton, Organizing Schools for Improvement: Lessons from Chicago (Chicago: University of Chicago Press, 2009).
209. Doris Entwisle, Karl Alexander, and Linda Olsen, Children, Schools, and Inequality (Boulder, CO: Westview, 1997).
210. Alan Krueger, "Inequality: Too Much of a Good Thing," in Heckman and Krueger, Inequality in America.
211. Atila Abdulkadiroglu, Joshua Angrist, Susan Dynarski, Thomas Kane, and Parag Pathak, "Accountability and Flexibility in Public Schools: Evidence from Boston's Charters and Pilots," NBER Working Paper 15549, National Bureau of Economic Research, Cambridge, MA, 2009.
212. Sam Dillon "Obama to Seek Sweeping Change in 'No Child' Law," New York Times, February 1, 2010.
213. Haskin and Sawhill, Creating an Opportunity Society, 149.
214. David Deming and Susan Dynarski, "Into College and Out of Poverty? Policies to Increase the Post-Secondary Attainment of the Poor," NBER Working Paper 15387, National Bureau of Economic Research, Cambridge, MA, 2009.
215. Susan Dynarski, The Economics of Student Aid, NBER Reporter Research Summary 2007, no. 1, National Bureau of Economic Research, Cambridge, MA, 2007.
216. OECD, Health Data 2008: Statistics and Indicators for 30 Countries (Paris: Organization for Economic Co-operation and Development, 2008).
217. Alan Garber and Jonathan Skinner, "Is American Healthcare Uniquely Inefficient?" Journal of Economic Perspectives 22, no. 4 (Fall 2008):27-50.
218. Chris Peterson and Rachel Burton, US Healthcare Spending: Comparison with Other OECD Countries (Washington, DC: Congressional Research Service, 2007).
219. Andrew Pollack, "Hospitals Look to Nuclear Tool to Fight Cancer," New York Times, December 26, 2007.
220. Katherine Baicker, Elliott S. Fisher, and Amitabh Chandra, "Malpractice Liability Costs and the Practice of Medicine in the Medicare Program," Health Affairs 26, no. 3 (May-June 2007):841-52.
221. Robert Shiller, The New Financial Order (Princeton, NJ: Princeton University Press, 2003), 118-19.
222. Luigi Zingales, Saving Capitalism from the Capitalists (Princeton, NJ: Princeton University Press, 2004).
223. Shlomo Benartzi and Richard Thaler, "Save More Tomorrow: Using Behavioral Economics to Increase Employee Savings," unpublished manuscript, University of Chicago.
224. Bernard Mandeville, The Fable of the Bees (1714) (Oxford: Clarendon Press, 1957).
225. Jeffry Frieden, "Global Imbalances, National Rebalancing, and the Political Economy of Recovery," working paper, Council on Foreign Relations, New York, 2009.
226. "Leaders' Statement: The Pittsburgh Summit," Pittsburgh Summit, www.pittsburgh summit.gov/mediacenter/129639.htm, September 25, 2009.
227. M. Goldstein and N. Lardy, The Future of China's Exchange Rate Policy (Washington, DC: Peterson Institute for International Economics, 2009).
228. Dani Rodrik, "The Real Exchange Rate and Economic Growth," working paper, Kennedy School of Government, Harvard University, 2008.
229. George Monbiot, "Keynes Is Innocent: The Toxic Spawn of Bretton Woods Was No Plan of His," Guardian, November 18, 2008.
230. Eswar S. Prasad, "Is the Chinese Growth Miracle Built to Last?" China Economic Review 20 (2009):103-23.
231. Tarun Khanna and Yasheng Huang, "Can India Overtake China?" Foreign Policy (July-August 2003):75-81.
232. Cited in "Counting Their Blessings," Economist, January 2, 2010.