174
Views
2
CrossRef citations to date
0
Altmetric
Original Article

The comparative advantage of the U.S. shadow banking system and the role of the U.S. dollar

Pages 20-42 | Received 09 Feb 2019, Accepted 23 Apr 2019, Published online: 15 May 2019

References

  • Acharya, V. V., and T. S. Öncü. 2010. “The Repurchase Agreement (Repo Market).” In Regulating Wall Street: The Dodd-Frank Act and the New Architecture of Global Finance, edited by V. V. Acharya, T. F. Cooley, M. P. Richardson, and I. Walter. Hoboken, NJ: John Wiley and Sons, pp. 319–50.
  • Acharya, V. V., and P. Schnabl. 2010. “Do Global Banks Spread Global Imbalances? Asset Backed Commercial Paper during the Financial Crisis of 2007–2009.” IMF Economic Review 58 (1):37–73. doi: 10.1057/imfer.2010.4.
  • Adrian, T., and H. S. Shin. 2010. “The Changing Nature of Financial Intermediation and the Financial Crisis of 2007-09,” Federal Reserve Bank of New York Staff Reports, No. 439, March 2010. pp. 1–39.
  • Aglietta, M. 2000. “A Lender of Last Resort for Europe.” In Which Lender of Last Resort for Europe?, edited by C.A.E. Goodhart. London: Central Banking Publication, pp. 33–67.
  • Altunbas, Y., L. Gambacorta, and D. Marqués. 2007. “Securitisation and the Bank Lending Channel,” ECB Working Paper Series, No. 383, December 2007.
  • Ando, M. 2012. “Recent Developments in U.S. Dollar Funding Costs through FX Swaps,” Bank of Japan Review, 2012-E-3, April 2012.
  • Arteta, C., M. Carey, R. Correa, and J. Kotter. 2013. “Revenge of the Steamroller ABCP as a Window on Risk Choices.” International Finance Discussion Papers Board of Governors of the Federal Reserve System. No. 1076, April 2013.
  • Baba, N., R. N. McCauley, and S. Ramaswamy. 2009. “US Dollar Money Market Funds and non-US Banks.” BIS Quarterly Review 65–80.
  • Bakk-Simon, K., S. Borgioli, C. Giron, H. Hempell, A. Maddaloni, F. Recine, and S. Rosati. 2012. “Shadow Banking System in the Euro Area: An Overview.” Occasional Paper Series European Central Bank, No. 133, April 2012.
  • Baklanova, V., A. Copeland, and R. McCaughrin. 2015. “Reference Guide to U.S. Repo and Securities Lending Markets,” Federal Reserve Bank of New York Staff Report, No. 740, September 2015.
  • Barber, L., and R. Atkins. 2011. “FT Interview: Jean-Claude Trichet,” Financial Times, October 13, 2011.
  • Bayoumi, T. 2017/2018. Unfinished Business. New Haven, CT: Yale University Press.
  • Bayoumi, T., and T. Bui. 2012. “Apocalypse Then: The Evolution of the North Atlantic Economy and the Global Crisis,” IMF Working Paper, 11/212, September 2011.
  • Beltran, D. O., L. Pounder, and C. Thomas. 2008. “Foreign Exposure to Asset-Backed Securities of U.S. Origin,” International Finance Discussion Paper, Board of Governors of the Federal Reserve System, No. 939, August 2008.
  • Bernanke, B. S. 2015. Federal Reserve Policy in an International Context, Paper presented at the 16th Jacques Polak Annual Research Conference Hosted by the International Monetary Fund, Washington DC, November 5–6, 2015.
  • Bertaut, C., L. P. DeMarco, S. Kamin, and R. Tryon. 2011. “ABS Inflows to the United States and the Global Financial Crisis,” International Finance Discussion Papers, Board of Governors of the Federal Reserve System, No. 1028, August 2011.
  • Bhatia, A. V., and T. Bayoumi. 2012. “Leverage What Leverage: A Deep Dive into the U.S. Flow of Funds in Search of Clues to the Global Crisis,” IMF Working Paper, 12/162, June 2012.
  • Bouveret, A. 2011. An Assessment of the Shadow Banking Sector in Europe, July 2011.
  • Broz, J. L. 2012. The Federal Reserve as Global Lender of Last Resort, the conference on “Governing the Federal Reserve,” October 4–5, 2012, Nuffield College, Oxford University.
  • Buttonwood, 2017. “The Greenspan Legacy: The Fed Chairman’s Record is a Case Study in Cognitive Dissonance,” The Economist, January 5 2017.
  • Caballero, R. J. 2006. “On the Macroeconomics of Asset Shortages,” NBER Working Paper Series, No.12753, December 2006.
  • Carbo-Valverde, S., E. J. Kane, and F. Rodriguez-Fernandez. 2011. “Safety-net Benefits Conferred on Difficult-to-fail-and-unwind Banks in the US and EU before and during the Great Recession,” NBER Working Paper, No. 16787, February 2011.
  • Claessens, S., Z. Pozsar, L. Ratnovski, and M. Singh. 2012. “Shadow Banking: Economics and Policy,” Staff Discussion Note, IMF, December 2012.
  • Cohen, B. J. 2011. The Future of Global Currency: The Euro versus the Dollar. New York, NY: Routledge.
  • Council of Economic Advisors. 2004. Economic Report of the President: Transmitted to the Congress. Washington DC: U.S. Government Printing Office.
  • Cömert, H. 2013. Central Banks and Financial Markets: The Declining Power of US Monetary Policy. Cheltenham, UK/Northampton, MA: Edward Elgar.
  • De Grauwe, P. 2013. “The European Central Bank as Lender of Last Resort in the Government Bond Markets.” CESifo Economic Studies 59 (3):520–35. doi: 10.1093/cesifo/ift012.
  • Deutsche Bundesbank. 2014. “The Shadow Banking System in the Euro Area: Overview and Monetary Policy Implications”, Deutsche Bundesbank Monthly Report, March 2014, pp. 15–34.
  • Eichengreen, B. 1997. The Euro as a Reserve Currency, November, 1997.
  • European Central Bank. 1999. Annual Report.
  • European Central Bank. 2002. “Main Features of the Repo Market in the Euro Area,” Monthly Bulletin, ECB, October 2002, pp. 55–68.
  • European Central Bank. 2006. “Box 7: The Widening of the Collateral Pool for Secured Lending in the Euro Area.” Financial Stability Review 71–73.
  • European Central Bank. 2007. TARGET 2 Securities Blueprint, 8 March 2007.
  • European Central Bank. 2009b. “The International Role of the Euro in the Market for Asset-Backed Securities.” The International Role of the Euro 31–34.
  • European Central Bank. 2011a. Recent Developments Securitisation, February 2011.
  • European Central Bank. 2011c. The International Role of the Euro, July 2011.
  • European Central Bank. 2011d. “The Supply of Money–Bank Behaviour and the Implications for Monetary Analysis.” Monthly Bulletin ECB 63–79.
  • European Central Bank. 2012. Financial Integration in Europe, April 2012.
  • European Central Bank. 2014. Euro Repo Market Improvements for Collateral and Liquidity Management, July 2014.
  • European Commission. 2013. Shadow Banking – Addressing New Sources of Risk in the Financial Sector, Brussels, 4.9.2013 COM (2013) 614 final.
  • European Systemic Risk Board. 2013. “European Banks Use of US Dollar Funding Systemic Risk Issues.” Macro-Prudential Commentaries No.5, March 2013.
  • European Systemic Risk Board. 2014. “Is Europe Overbanked?” Reports of the Advisory Scientific Committee, No.4, June 2014.
  • Ewehart, C., and J. Tapking. 2008. “Repo Markets, Counterparty Risk and the 2007/2008 Liquidity Crisis,” ECB Working Paper Series, No.909, June 2008.
  • Folkerts-Landau, D., and P. M. Garber. 1992. “The European Central Bank or a Monetary Policy Rule,” NBER Working Papers Series, No.4016, March 1992.
  • Gabor, D. 2016. “A Step Too Far: The European Financial Transactions Tax on Shadow Banking.” Journal of European Public Policy 23 (6):925–45. doi: 10.1080/13501763.2015.1070894.
  • Gabor, D. 2016. “The (Impossible) Repo Trinity: The Political Economy of Repo Markets.” Review of International Political Economy 23 (6):967–1000. doi: 10.1080/09692290.2016.1207699.
  • Gabor, D., and C. Ban. 2015. “ “Banking on Bonds: The New Links between States and Markets.” Journal of Common Market Studies 53(4): 617–635. doi:10.1111/jcms.12309
  • Gerdesmeier, D., M. Francesco Paolo, and R. Barbara. 2007. “The Eurosystem, the US Federal Reserve and the Bank of Japan: Similarities and Differences,” Working paper series, ECB, No. 742, March 2007.
  • Gordon, G. 2015. Mobile Collateral versus Immobile Collateral, June 2015 BIS Annual Conference in Lucerne, Switzerland, April 27, 2015.
  • Gourinchas, P.-O. 2010. “U.S. Monetary Policy, ‘Imbalance’ and the Financial Crisis,” Remarks Prepared for the Financial Crisis Inquiry Commission Forum, February 26–27, 2010.
  • Greenspan, A. 2002. Remarks by Chairman Alan Greenspan, before the Economic Club of New York, New York City, December 19, 2002, pp. 1–16.
  • Greenspan, A. 2007. The Age of Turbulence. New York, NY: The Penguin Press.
  • Hakkarainen, P. 2014. Shadow Banking – what kind of Regulation for the (European) Shadow Banking System? BIS Central Bankers’ Speeches, the Panel Discussion at the SAFE Summer Academy 2014 “Shadow Banking: Evolution, Background, Perspectives,” Brussels, 3 September 2014.
  • Haldane, A. 2010. “The Contribution of the Financial Sector Miracle or Mirage?” at the Future of Finance Conference, London, 14 July 2010.
  • Hardie, I., and D. Howarth. 2013. “Framing Market-Based Banking and the Financial Crisis.” In Market-Based Banking and the International Financial Crisis, edited by I. Hardie and D. Howwarth. Oxford, UK: Oxford University Press, pp. 22–55.
  • He, D., and R. N. McCauley. 2012. “Eurodollar Banking and Currency internationalization.” BIS Quarterly Review 2012:33–46.
  • Herr, H. 2013. “The European Central Bank and the US Federal Reserve as Lender of Last Resort.” Panoeconomicus 2014 (1):59–78. doi: 10.2298/PAN1401059H.
  • Hördahl, P., and M. R. King. 2008. “Developments in Repo Markets during the Financial Turmoil.” BIS Quarterly Review 2008:37–53.
  • Humphrey, T. M. 1992. “Lender of Last Resort.” In The New Palgrave Dictionary of Money and Finance, edited by P. K. Newman, M. Milgate and J. Eatwell, Vol. 2. London, NY: Macmillan, Stockton Press, pp. 571–3.
  • IMF. 2011. The Multilateral Aspects of Policies Affecting Capital Flows—Background Paper, 21 October 2011.
  • IMF. 2014. Global Financial Stability Report, October 2014.
  • International Capital Market Association. 2014. “Collateral is the New Cash: The Systemic Risks of Inhibiting Collateral Fluidity,” April 2014, pp. 1–27.
  • Jeffers, E., and D. Plihon. 2011. What is so Special about European Shadow Banking? https://www.aeaweb.org/conference/2016/retrieve.php?pdfid=1294
  • Johnson, S., and J. Kwak. 2010. 13 Bankers: The Wall Street Takeover and Next Financial Meltdown. New York, NY: Pantheon Books.
  • Kindleberger, C. P. 1978/2005. Manias, Panics and Crashes: A History of Financial Crises. 5th ed. Hoboken, NJ: John Wiley and Sons.
  • Kindleberger, C. P., E. Despres, and W. S. Salant. 1966. “The Dollar and World Liquidity: A Minority View,” the Economist, February 5, C. P. Kindleberger [1981], International Money: A Collection of Essays. London: Geroge Allen & Unwin.
  • Kozak, S., and O. Teplova. 2012. “Securitization as a Tool of Bank Liquidity and Funding Management before and after the Crisis the Case of the EU.” Financial Internet Quarterly: e-Finanse 8 (4):30–43.
  • Le Leslé, V. 2012. “Bank debt in Europe: Are Funding Model Broken,” IMF Working Paper Series, 12/299, December 2012.
  • Liikanen, E., C. H. Bänziger, J. M. Campa, L. Gallois, M. Goyens, J. P. Krahnen, M. Mazzucchelli, C. Sergeant, Z. Tuma, J. Vanhevel, and H. Wijffels. 2012. High-level Expert Group on Reforming the Structure of the EU Banking Sector: Final Report, Brussels, 2 October 2012.
  • Maes, S. 2015. “Shadow Banking: A European Perspective.” In Shadow Banking within and across National Borders, World Scientific Studies in International Economics, edited by S. Claessens, D. Evanoff, G. Kaufman, and L. Laeven, Singapore: World Scientific Publishing, pp. 347–72.
  • Mallaby, S. 2016. The Man Who Knew: The Life and Times of Alan Greenspan. New York, NY: Penguin Press.
  • McCauley, R. N. 2012. “The Euro and the Yen as Anchor Currencies: before and during the Financial Crisis – Comments on Moss’s Paper “The Euro: Internationalised at birth” and Takagi’s paper “Internationalising the yen, 1984–2003: Unfinished Agenda or Mission impossible?”, Currency Internationalisation: Lessons from the Global Financial Crisis and Prospects for the Future in Asia and the Pacific, BIS Papers, No.61, January 2012, pp. 93–104.
  • McCauley, R. N. 2018. “The 2008 Crisis: Transpacific or Transatlantic?” BIS Quarterly Review 39–58.
  • Moutot, P., A. Jung, and F. P. Mongelli. 2008. “The Workings of the Eurosystem: Monetary Policy Preparations and Decision-making,” ECB Occasional Paper Series, No. 79, January 2008.
  • Nakao, S. 1991/1995. The Political Economy of Japan Money. Tokyo: University of Tokyo Press.
  • Noeth, B., and R. Sengupta. 2012. “Global European Banks and the Financial Crisis,” Review, Federal Reserve Bank of St. Louis, November/December 2012, pp. 457–480.
  • Obstfelt, M. 2009. “Lenders of Last Resort in a Globalized World,” Coleman Fung Risk Management Research Center, Institute of Business and Economic Research, UC Berkeley, January 2009.
  • O'Driscoll, G. P. Jr., 2009. “Money and the Present Crisis.” Cato Journal 29 (1):167–86.
  • Papadoa-Schioppa, T. 2000. “EMU and Banking Supervision.” In Which Lender of Last Resort for Europe?, edited by C.A.E. Goodhart. London: Central Banking Publication, pp.13–29.
  • Papaioannou, E. and R. Portes. "Costs and Benefits of Running an International Currency," Economic Paper, European Commission, No. 348, November 2008.
  • Pollard, S. P. 2003. “A Look Inside Two Central Banks: The European Central Bank and the Federal Reserve,” Review, The Federal Reserve Bank of St. Louis, January/February 2003, pp. 11–30.
  • Pozsar, Z., T. Adrian, A. Ashcraft, and H. Boesky. 2010. “Shadow Banking,” Federal Reserve Bank of New York working paper, No.458, July 2010.
  • Prati, A., and G. J. Schinasi. 1997a. “EMU and International Capital Markets: Structural Implications and Risks.” In EMU and the International Monetary System, edited by P. R. Masson, T. H. Krueger, and B. G. Turtelboom. Washington DC: IMF, pp. 263–388.
  • Prati, A., and G. J. Schinasi. 1997b. “European Monetary Union and International Capital Markets: Structural Implications and Risks,” IMF Working paper, 97/62, May 1997.
  • Schinasi, G. J., C. F. Kramer, and R. T. Smith. 2001. “Financial Implications of the Shrinking Supply of U.S. Treasury Securities,” IMF working paper, 01/61, May 2001.
  • Schinasi, G. J., and P. G. Teixeira. 2006. “The Lender of Last Resort in the European Single Financial Market,” IMF working paper, 06/127, May 2006.
  • Shin, H. S. 2010. Risk and Liquidity. New York, NY: Oxford University Press.
  • Shin, H. S. 2012. Global Banking Glut and Loan Risk Premium, Mundell–Fleming Lecture, the 2011 IMF Annual Research Conference, 10–11 November, Princeton University, January 2012.
  • Singh, M. 2011. “Velocity of Pledged Collateral: Analysis and Implications,” IMF Working Paper, 11/256, November 2011.
  • Strange, S. 1986/2016. Casino Capitalism. Manchester, UK: Manchester University Press.
  • Tavlas, G. S., and Y. Ozeki. 1992. “The Internationalization of Currencies: An Appraisal of the Japanese Yen,” IMF Occasional Paper, No.90, January 1992.
  • The Committee on the Global Financial System. 2010. The Role of Margin Requirements and Haircuts in Procyclicality, CGFS Papers, No.36, March 2010.
  • The Committee on the Global Financial System. 2011. Global Liquidity Concept, Measurement and Policy Implication, CGFS Papers, No.45, November 2011.
  • The Financial Crisis Inquiry Commission. 2011. The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States. Washington DC: U.S. Government Printing Office.
  • The Giovannini Group. 1999. “EU Repo Markets: Opportunities for Change,” October 1999.
  • Thiemann, M. 2012. “Out of the Shadow?: Accounting for Special Purpose Entities in European Banking Systems.” Competition and Change 16 (1):37–55. doi: 10.1179/1024529411Z.0000000003.
  • Tokunaga, J., and G. Epstein. 2018. “The Endogenous Finance of Global-Dollar Based Financial Fragility in the 2000s: A Minskyan Approach.” Review of Keynesian Economics 6 (1):62–82. doi: 10.4337/roke.2018.01.04.
  • White, L. J. 2009. “The Credit Rating Agencies and the Subprime Debacle.” Critical Review 21 (2–3):389–99. doi: 10.1080/08913810902974964.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.