QuestionsonBernankelecture

QuestionsonBernankelecture - 1. What, according to...

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1. What, according to Bernanke, were triggers of the crisis? How did sub-prime loans play a role in the crisis? What role did IKB’s special purpose vehicle play in triggering the crisis? What is “Run on Commercial Paper” and why did it happen? What caused interbank lending to freeze up? Which group of borrowers was most affected by the above changes? What specific change had occurred in Syndicated lending to large, relatively risky corporate borrowers before the crisis? 2. What, according to Bernanke, were the key vulnerabilities that were products of private-sector arrangements? What are Shadow Banks? Why were Shadow Banks highly susceptible to runs? How does a run on financial instruments such as ABCP affect the market for risk free assets such as T-securities? Is the Federal Reserve permitted to lend to Shadow Banks during normal times? How did money market mutual funds respond when they faced a “run”? What happened to demand for dollars in international markets during the crisis?
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This note was uploaded on 02/13/2012 for the course ECON 423 taught by Professor Vd during the Spring '08 term at UNC.

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QuestionsonBernankelecture - 1. What, according to...

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